Question: 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

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

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 $11. $14 $15 Medium facility 15 15 Large facility -5 B 15 *Present value in $ millions. nces Given the payoff table, find the alternative that would be chosen using the maximin criterion. (Negative answer should be indicated by a minus sign. Enter your answers in millions.) Maximin payoff for each alternative: Large M Medium M Small M Maximin payoff of the minimums: at M

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