Question

Frank Wesley, project manager for the LOGON project, is concerned about the development time for the robotic transporter. Although the subcontractor, Creative Robotics, has promised a delivery time of 6 weeks, Frank knows that the actual delivery time will be a function of the number of other projects Creative Robotics is working on. As an incentive to speed up delivery of the transporter, Frank has three options: S1: Do nothing S2: Promise Creative Robotics a future contract with Iron Butterfly S3: Threaten to never contract with Creative Robotics again. He estimates the impact of these actions on delivery time would be as follows: Payoffs: Strategy Creative Robotics Workload Low Average Busy S1 4 6 8 S2 3 4 7 S3 3 6 6 What strategy should Frank adopt based upon uncertainty criteria

Answer 1

s3

Step-by-step explanation:

Adopting s1 will result in delivery time of 8 weeks when Creative Robotics is busy as per maximin criteria and maximax criteria.

Adopting s3 will result in delivery time of 6 weeks when Creative Robotics is busy as per minimax criteria.

In this scenario, minimax criteria must be used to make decision as worst loss is to be estimated.