MGT613 Assignment # 1 Solution

MGT 613 Idea Solution:


Maximin Approach:

Road S = 40
Road M = 55 the best
Road D = 30

Maximax Apporach:

Road S = 50
Road M = 75
Road D = 85 the best
Laplace approach:
Road S = 43.33
Road M = 63.33 the best
Road D = 56.67
Maximax regret:

The best (doubted
Between Road M & D)
Alternatives Possible Future Demands

Low
Moderate
High
Road S

40-40 = 0
40-60 = -20 50-55 = -5

Road M

55-40 = 15
60-60 = 0
75-55 = 20

Road D

30-40 = -10 55-60 = -10 85-55 = 30
Calculations
Road S = 40+40+50=130/3=43.33
Road M = 55+60+75=190/3=63.33
Road D = 30+55+85=170/3=56.67