Mylo runs a cafeteria situated on the ground floor of a large corporale office block Each of the five floors of the buil

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Mylo Runs A Cafeteria Situated On The Ground Floor Of A Large Corporale Office Block Each Of The Five Floors Of The Buil 1 (48.65 KiB) Viewed 70 times

Mylo runs a cafeteria situated on the ground floor of a large corporale office block Each of the five floors of the building are occupied and there are in total 1 240 employees. Mylo sells lunches and snacks in the cafeteria. The lunch menu is freshly prepared each moming and Mylo has to decide how many meals to make each day. As the office block is located in the city centre, there are several other places situated around the building where staff can buy their lunch, so the level of demand for lunches in the cafeteria is uncertain. Mylo has analysed daily sales over the previous six months and established four possible demand levels and their associated probabilities. He has produced the following payoff table to show the daily profits which could be earned from the lunch sales in the cafeteria Demand level Probability Supply level 450 620 775 960 NS NS NS NS 450 0.15 1 170 980 810 740 620 0.30 1 170 1612 1 395 1 290 775 0.40 1 170 1612 2015 1 785 960 0.15 1 170 1612 2015 2 496 if Mylo adopts a minimax regret approach to decision-making, which daily supply level will he choose? Answer |