This is a operations research question. Please take your time when answering the questions no rush and explain the answer so I can better understand The notes are stored on Google Drive and Dropbox Link 1 https://drive.google.com/file/d/1ErZVISeYHvZRa1lfkuslJWSunsq595fa/view?usp=drivesdkLink 2 https://www.dropbox.com/s/b8dgjacypajqvm3/Question%203%202018%20.pdf?dl=0

Question 3 A. The owner of Winifred Restaurant is considering three options for a facility next year. She can expand her current shop, move to a larger facility or make no change. Her decision will be guided by the information below: Winifred Restaurant Payoff Table Payoffs are Profits States of Nature (Market) Decision Favourable Average Unfavourable Alternatives Expand $56 000 $21 000 - $29 000 Move $70 000 $35 000 - $45 000 No Change $30 000 $10 000 $ 5 000 i. Which option would be best if she uses the LaPlace criterion? ii. If a maximax approach is used, what alternative should be adopted? iii. If the probability of a favourable market is 25%, that of an average market, 45%, and of an unfavourable market, 30%, and EMV is used, what should be her option? What is that optimal expected value? iv. What is the most that the owner would be willing to pay for additional information? Use Minimum Expected Regret (Minimum EOL). v. Use the alternative method to verify EVPI. B. The annual demand for an item is 12 000 units. Ordering cost is $80 per order and carrying cost is 20% of the unit cost of $15. Calculate: i. The Economic order quantity ii. Annual ordering cost iii. Annual carrying cost iv. Total annual cost