What is the best of the best payoff value? DIHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small- time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. %3D States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000
What is the best of the best payoff value? DIHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small- time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. %3D States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 2VC
Related questions
Question
Transcribed Image Text:What is the best of the best payoff
value?
DİHL Co. is a Danao-based logistics
company owned by Engr. Donald H.
Lalican. Anticipating the growing
demand for delivery services, he
developed a strategic plan for the
year 2022. The options are to hire
additional delivery crews in their
Mandaue facility, construct a new
facility in Talisay City, or
subcontract Ohlala Move, a small-
time company. A study conducted
by the marketing department
forecasted the following payoff
values, which are summarized in the
table below. The values are
expressed as gains and alpha = 0.6.
States of Nature
Decision Alternatives
Failure
Low
Moderate
High
Hire additional Drivers in Mandaue
-450,000
-250,000
250,000
500,000
Construct a facility in Talisay
-800,000
-400,000
300,000
700.000
Subcontracting Ohlala Move
-100,000
-10,000
150,000
300,000
E O 300,000.00
II
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you