[Steps Shown] Brilliant Color is a small supplier of chemicals and equipment that are used by some photographic stores to process 35mm film. One product that


Question: Brilliant Color is a small supplier of chemicals and equipment that are used by some photographic stores to process 35mm film. One product that Brilliant Color supplies is BC-6. John Kubick, president of Brilliant Color, normally stocks 11, 12, or 13 cases of BC-6 each week. For each case that John sells, he receives a profit of $55. Like many photographic chemicals, BC-6 has a very short shelf life, so if a case is not sold by the end of the week, John must discard it. Since each case costs John $58, he loses $58 for every case that is not sold by the end of the week. There is a probability of 0.35 of selling 11 cases, a probability of 0.40 of selling 12 cases, and a probability of 0.25 of selling 13 cases.

  1. Construct a decision table for this problem. Include all conditional values and probabilities in the table.
  2. What is your recommended course of action?
  3. If John is able to develop BC-6 with an ingredient that stabilizes it so that it no longer has to be discarded, how would this change your recommended course of action?

You may submit just the answers or you may submit the answers and the QM worksheets you used to arrive at the answer. Choosing the latter will afford instructors the opportunity to review your work and determine if you understand the concept but have made some minor computational error, therefore allowing them to assign some credit based on your understanding. Submitting just the answers does not provide for any partial credit.

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