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Mech Inc. prides itself on delivering serpentine belts for the automotive industry. As any profitable company would do, it decided to magnify its production by constructing a new manufacturing plant but is currently having uncertainties deciding whether to build a big or a small plant. The CEO is also open for purchasing the research study on the customers’ demand on the company’s products but is having reservations.
We – the management team – are going to seek for a solution on this impasse with the collaborative assistance of the other teams to meet the end goal of the company.
As requested by the CEO, below are the developed optional decision strategies using Optimistic, Conservative, and Minimax Regret strategies (in millions)....
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