Question

Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as...

Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives.

Future Demand

Alternatives

Low

Moderate

High

Small Facility

111

81

91

Medium Facility

51

130

102

Large Facility

-12

124

126

  

Alternatives

Worst Regrets

Small Facility

?

Medium Facility

?

Large Facility

?

  
a) The worst regrets for alternative Small Facility is

The worst regrets for alternative Medium Facility is  
  
c) The worst regrets for alternative Large Facility is  
  
d) The best course of action or decision by using Minimax Regret is to select  facility

Business   Operations-Management   
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Answer #1

Below is the screenshot of the formula applied -

Below is the screenshot of the result calculated -

From above -

a) The worst regrets for alternative Small Facility is 49

b) The worst regrets for alternative Medium Facility is 60
  
c) The worst regrets for alternative Large Facility is 123
  
d) The best course of action or decision by using Minimax Regret is to select Large facility

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