Answer Happy

A factory can produce three models of their product: A, B, and
C. The raw materials used to produce each model are bought from
three suppliers: X, Y, and Z. The decision is made according to
different factors including the availability of all raw materials
on the supplier side, the total cost, the delivery time, etc.. The
table below shows the cost (in thousands) to produce each of the
three models next month. Suppose you are asked to answer the
question: which model should be produced to eliminate the cost for
the next month. Answer the following questions based on the data
provided in the table:
A
B
C
X
5
3
10
Y
8
4
5
Z
2
4
1
a. Determine the decision variable (s) and the output
variable?
b.Suppose the decision will be made under uncertainty and that
the pessimistic approach will be used, which model would you
choose? Justify your answer.
c.Suppose the decision will be made under risk and that the
probability of providing the raw materials is 30% from X, 60% from
Y and 10% from Z, which model would be the best. Justify your
answer.