Decision Making Process for Facility Construction

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What is the decision rule used to evaluate alternatives under uncertainty?

Maximin

In the decision problem under certainty, what is the best choice if future demand will be low?

Build a small facility

What is the payoff for the large facility if future demand is high?

800

Which alternative is dominated in the decision-making process under certainty?

Do nothing Signup and view all the answers

What is Maximax in decision-making under uncertainty?

Maximax Signup and view all the answers

What is the worst payoff for the small facility under the Maximin criteria?

200 Signup and view all the answers

What is the purpose of using the expected value decision rule in capacity planning?

To choose the alternative with the best expected value, which is the highest for profits and lowest for costs. Signup and view all the answers

How is the maximum regret calculated in decision making?

By finding the worst regret for each alternative and selecting the maximum value. Signup and view all the answers

In the provided example, why is the large facility chosen to minimize maximum regret?

The biggest regret is associated with having only a small facility and high demand. Signup and view all the answers

What is the expected value for the small facility when the probability of small demand is 0.4 and large demand is 0.6?

242 Signup and view all the answers

How is the best alternative determined using the expected value decision rule?

By selecting the alternative with the highest expected value. Signup and view all the answers

Which alternative is considered the best in the provided example when probabilities of small and large demand are known?

Large facility Signup and view all the answers

What is the formula for calculating forecast error for a period t?

et = Actual Demand - Forecast Demand = At - Ft Signup and view all the answers

Why is it important to use the correct formula for forecast error calculation?

Using the correct formula ensures that negative errors do not cancel out positive errors, providing a more accurate interpretation of the net error. Signup and view all the answers

What is the purpose of calculating Mean Absolute Deviation in forecasting errors?

Mean Absolute Deviation helps in measuring the average magnitude of errors without considering their direction. Signup and view all the answers

How is Mean Squared Error useful in forecasting?

Mean Squared Error quantifies the average of the squares of errors, giving higher weight to larger errors. Signup and view all the answers

What is the significance of understanding different types of forecasting errors?

Understanding different types of forecasting errors helps in selecting the most appropriate error calculation method based on the context and requirements. Signup and view all the answers

Explain the concept of tracking signal in forecasting.

Tracking signal is used to monitor the forecast errors over time, indicating when the forecast needs adjustment based on the accumulated errors. Signup and view all the answers

What are the course meeting days and times for the lecture?

Mon, Tue, Wed 12:30 – 1:30 pm Signup and view all the answers

What is the grade calculation policy for the course?

30 (Minor)+ 40 (Major) +15 (Assignments) +15 (Quiz +CP) Signup and view all the answers

How is attendance managed in the course?

Attendance will be recorded in class. If below 75%, grade drops by one. Signup and view all the answers

What is the textbook used for the course?

Factory Physics, 2nd edition by WJ Hopp and ML Spearman Signup and view all the answers

What is the email policy for communication with the course coordinator and TA?

All emails should be copied to both the course coordinator and TA, and subject line must start with 'MCL361'. Signup and view all the answers

Who is the head teaching assistant for the course?

Kumar Sarthak Signup and view all the answers

Which step involves creating the frequency table?

STEP 1 :CREATE THE FREQUENCY TABLE Signup and view all the answers

What is the purpose of forming the nucleus in Step 2?

Identify the machine with the smallest non-zero frequency. Signup and view all the answers

What action is taken in Step 3 to adjust the frequency matrix?

Using the alter matrix, adjust the frequency matrix. Signup and view all the answers