Question

In: Accounting

A bakery must decide how many pies to prepare for the upcoming weekend. The bakery has...

A bakery must decide how many pies to prepare for the upcoming weekend. The bakery has the option to make 50, 100, or 150 pies. Assume that demand for the pies can be 50, 100, or 150. Each pie costs $5 to make and sells for $7. Unsold pies are donated to a nearby charity center. Assume that there is no opportunity cost for lost sales.

7) Refer to the information above.

a. Which alternative should be chosen based on the maximax criterion?

b. Which alternative should be chosen based on the maximin criterion?

c. Which alternative should be chosen based on the Lapalce criterion?

d. Which alternative should be chosen based on criterion of realism with alpha = 0.8?

e. Which alternative should be chosen based on the minimax regret criterion?

(PLEASE ANSWER IN EXCEL SPREADSHEET)

Solutions

Expert Solution

The five sub parts are solved in 5 different images.
There is no option available to upload the file, thus, images it is.
Also, regarding the sum, as the extra pies are odnated to charity, they will be of zero value. Same goes for the oppurtunity cost.

ekkarill92 answered 1 year ago
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