Harley General Manager
music4lyfe
HarleyGeneralManager.docx· Options:
|
Facility |
Demand Options |
Probability |
Actions |
Expected Payoffs |
|
|
|
|
|
|
|
Large |
Low Demand |
0.4 |
Do Nothing |
($10) |
|
|
Low Demand |
0.4 |
Reduce Prices |
$50 |
|
|
High Demand |
0.6 |
|
$70 |
|
|
|
|
|
|
|
Small |
Low Demand |
0.4 |
|
$40 |
|
|
High Demand |
0.6 |
Do Nothing |
$40 |
|
|
High Demand |
0.6 |
Overtime |
$50 |
|
|
High Demand |
0.6 |
Expand |
$55 |
·
·
· Determination of chance probability and respective payoffs:
|
Build Small: |
|
|
Low Demand |
0.4($40)=$16 |
|
High Demand |
0.6($55)=$33 |
|
|
|
|
Build Large: |
|
|
Low Demand |
0.4($50)=$20 |
|
High Demand |
0.6($70)=$42 |
