This question refers to an example in the book Production/Operations Management by William J. Stevenson. The example involves a capacity-planning problem in which a company must choose to build a small, medium, or large production facility. The payoff obtained will depend on whether future demand is low, moderate, or high, and the payoffs are as given in the following table:

	Possible Future Demand
Alternatives	Low	Moderate	High
Small facility	$10*	$10	$10
Medium facility	7	12	12
Large facility	4	2	16

Maximum payoff for each alternative:
Small		M
Medium		M
Large		M

Maximin payoff of the minimums:

at

$

M