REQUIREMENT #1 (25 points): Electronex is in the process of trying to improve it
ID: 342581 • Letter: R
Question
REQUIREMENT #1 (25 points): Electronex is in the process of trying to improve its global operations. The company needs to select a single supplier located at one of the major port cities around the world. The company is considering three suppliers, located at one of the following ports, Amsterdam, Bremerhaven, or Shanghai. Electronex believes that future economic conditions will decline, improve or remain the same. The following table summarizes the company's estimates for anticipated profit or loss (in millions of S) given the respective future economic conditions. PROFIT ECONOMIC CONDITIONS (S million) Port City Remain SameImprove Deeline S50 $41 $42 S51 $66 $54 $73 S67 $78 Amsterdam Bremerhaven Shanghai a. (15 points) Sam tells you that the company's Chief Executive Officer (CEO) wants to make the best decision that avoids the regret associated with making this decision. Given the CEO's desire to avoid regret, which supplier location do you recommend? (SHOW YOUR WORKI) b. (10 points) Ms. Preston knows that even though usually an optimist, the CEO has recently become a bit more pessimistic about future worldwide economic conditions. Sam says that she would estimate the CEO's outlook for a pessimistic future economic outcome to be about 60%. Given this information, make a recommendation about the supplier location that best reflects the CEO's decision-making attitude. (SHOW YOUR WORK!)Explanation / Answer
A.
So out of 15, 11, 12
B.
Best option is Amsterdam for this scenario of 60% decline and so rest 40% is equally divided.
Min regret max for situation -currentRelated Questions
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