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Expected Monetary Value (EMV) and Minimax Regret Criteria State Payoff Table (Profits) Market Upturn Stable Market Market Downturn
Expected Monetary Value (EMV) and Minimax Regret Criteria State Payoff Table (Profits) Market Upturn Stable Market Market Downturn
Decision
Probabilities
Build New Store
Expand Old Store
Do Nothing
Market
Upturn
50%
$19
$15
$5
State
Stable
Market
Market Downturn
30%
20%
$4
($4)
$5
($3)
$1
($1)
EMV
$9.90
$8.40
$2.60
Market
Upturn
$0
$4
$14
State
Stable
Market
Market Downturn
$1
$3
$0
$2
$4
$0
Max
Regret
$3
$4
$14
Regret Table
Decision
POM97pre
Best
Best
0
518
160
40
$4,000
$5,000
$18
$25
4
$10
$2
$5
$120
1
518
0
0
518
>=
0
2
518
0
0
518
>=
0
3
518
0
0
518
>=
0
4
518
0
0
518
>=
0
82880
<=
82880
0
<=
20720
82880
<=
82880
0
<=
20720
82880
<=
82880
0
<=
20720
82880
<=
82880
7280
<=
20720
82880
82880
<=
<=
82880
82880
13840 -2.274E-013
<=
<=
20720
20720
82880
82880
82880
90160
96720
Production Plan
Month
Units Produced on St. Time
Units Produced on OT
Total Units Produced
1
20720
0
20720
2
20720
0
20720
3
20720
0
20720
4
20720
1820
22540
5
6
20720
20720
3460 -5.684E-014
24180
20720
11000
15500
31500
26700
30300
11600
126600
9720
0
9720
=
9720
14940
0
14940
=
14940
4160
0
4160
=
4160
0
0
0
=
0
0
6120
-6120
=
-6120
3000
0
3000
=
3000
>=
3000
1
$0
$0
$1,491,840
$0
$207,200
$19,440
$0
$0
$1,718,480
2
$0
$0
$1,491,840
$0
$207,200
$29,880
$0
$0
$1,728,920
3
$0
$0
$1,491,840
$0
$207,200
$8,320
$0
$0
$1,707,360
4
$0
$0
$1,491,840
$182,000
$225,400
$0
$0
$0
$1,899,240
5
$0
$0
$1,491,840
$346,000
$241,800
$0
$30,600
$0
$2,110,240
6
$0
$0
$1,491,840
$0
$207,200
$6,000
$0
$0
$1,705,040
Minimum Workers
St. Time Hours Used
St. Time Hours Available
Overtime Hours Used
Units Subcontracted
Demand
Held in Inventory
Shortage
Net Left
Ending Inventory
5
518
0
0
518
>=
0
$10,869,280
6
518
0
0
518
>=
0
82880
Totals
124320
5280
129600
Totals
$0
$0
$8,951,040
$528,000
$1,296,000
$63,640
$30,600
$0
$10,869,280