Assume that you are a decision maker for a company and the


Assume that you are a decision maker for a company and the company wants to develop and produce a product for following year. The company considers three products. The following table shows the profit as a function of sales potential for each product for next year. Profit ($) as a Function of Sales Potential Sales Potential Excellent (15%) Good (60%) Poor (25%) Product 1 $560,000 $200,000 -$350,000 Product 2 200,000 100,000 10,000 Product 3 320,000 50,000 -20,000 Use the following methods to make a decision (selecting one product to produce for next year) for each method. a) The Pessimistic Rule b) The Optimistic Rule c) The Hurwitz Rule d) Expected value of Profit e) Expected value of Opportunity loss

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Operation Management: Assume that you are a decision maker for a company and the
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