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Answers 1. Inventory management plays a very significant role in the organizations and is closely linked to the supply chain management. Business organizations maintain of finished goods to serve customers using various policies like vendor managed inventory and electronic data interchange. Inventory is considered to be an important asset and companies manage this asset strategically. The apex management plans, coordinates and controls acquiring...Read More
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Answer: Decision Analysis First: Expected Monetary Value The Expected Monitory Value (EMV) for alternative 1, 2, and 3 are -13,000, 10,000 and 0 respectively. Equally likely (Laplace),Maximax and Maximin The maximum pay-off under a Laplace is 5000. The maximax from the pay-off table is 30,000. The maximin from the pay-off table is 0. Criterion of Realism (Hurwicz), where Hurwicz coefficient =0.70 The maximum of the criteri...Read More
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