Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Norrington Airport has begun to take in regional jet flights, and needs to expand its air traffic control facilities. It has received three proposals from different agencies for how it can proceed to modernize its facilities. Plan A will cost the airport a total of $325,200 at present capacity, but if the airport traffic increases by at least 160% it will actually net the airport $34,040. Plan B will cost the airport a total of only $126,000 at present capacity, and if the airport traffic increases by at least 160% the airport will make $65,700. Plan C will cost the airport only $96,000 to implement, but if the airport traffic increases by at least 160% the system will be over capacity and the airport will make only $12,800. According to present levels of demand, the chance that airport traffic will increase at least 160% once the new system is put into place is estimated at 72%. Create a payoff table and a decision tree for this situation. Calculate the best options using maximax, maximin, and equal likelihood criteria (ignoring the probabilities), and then calculate the expected value for each situation. Which choice should the airport make?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91904210

Have any Question?


Related Questions in Operation Management

Athletic apparel is trying to determine how to manage theri

Athletic Apparel is trying to determine how to manage theri stock of t shirts. For one particular size adn color they have an average daily demand of 15 shirts, but it varies by about 4 shirts per day. Their lead time fo ...

Assessment tasknbsp - article critiquelocate and critically

Assessment Task  - Article Critique Locate and critically analyse a recent article on a topic concerning international business strategies and foreign market penetration. You will find such articles in daily newspapers a ...

Abcd imports an item whose demands over the next 4 months

ABCD imports an item whose demands over the next 4 months are 100, 240, 210 and 180 units, respectively. The company can either stock out just enough to fulfill the current month's demand or keep inventory for the succee ...

1 identify one product that is distributed using dual

1. Identify one product that is distributed using Dual Distribution. Explain. 2. Identify a product that is distributed using Intensive Indirect Distribution. Explain 3. Identify a product that is distributed using Selec ...

Pick a company to research make sure that it is large

Pick a company to research. Make sure that it is large enough to have enough data to make it easy to research. It is desired that this company should have a reasonable use of Internet/e-commerce technologies in its opera ...

Company bank of america co1 in what ways if any is your

Company: Bank of America co. 1. In what ways, if any, is your company exercising corporate social responsibility? What are the elements of your company’s CSR strategy? What changes to this strategy would you suggest? 2. ...

1 what are the upsides of oering benets instead of salary

1. What are the upsides of oering benets instead of salary? What are the downsides? 2. What are some of the challenges that companies face? 3. Compare the strategies and business models of Blockbuster, Netflix, and Redbo ...

Scenariodakota wesleyan university indicates in many places

Scenario: Dakota Wesleyan University indicates in many places in its public documents that it is a college which "affirms its relationship with the United Methodist Church" while at the same time maintaining a significan ...

How is beauty defined with a ldquovaluerdquo like goodness

How is beauty defined with a “value,” like goodness or truth (or can it be)? Where is history headed? Who determines what history is recorded, of all of earth’s past events?

You have been asked to develop a project plan for a new

You have been asked to develop a project plan for a new lakeshore resort in Northern Minnesota. Your customer would like the resort to have a main lodge and 6 cabins for 4 persons each. Assuming that your customer owns t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As