The Research and Development Division of the Emax Corporation has developed two new products. A decision to be made on the location where these products should be products should be produce. management wants primary consideration give two factors: total profit (X) and stability in the workforces (X2)

The next table shows the expected(profit,stability) for each combination and product

a) Calculate the Multi-Attribute Utilit for each combination of location/product.

b) Calculate the Expected Utility for each location considering that the probability that the market embrace a high demand for product 1 is 65% and for product 2 is 35%.

Where should the production be located?
 

Transcribed Image Text:

table shows the expected (Profit, Stat Location for production Brazil Vietnam Product 1 25,4 20,6 Product 2 15,5 30, 2 table shows the expected (Profit, Stat Location for production Brazil Vietnam Product 1 25,4 20,6 Product 2 15,5 30, 2

Answer rating: 100% (QA)

To calculate the MultiAttribute Utility MAU for each combination of locationproduct we use the given ... View the full answer