Question
A restaurant produces fresh burgers for its customers every day. The company is known for supplying fresh burgers and never uses burgers prepared on the previous day. Demand for burgers is uncertain, preparation capacity is limited, and the restaurant has the option of producing 0, 100, 200, 300 and 400 burgers every day. It has been estimated that the cost of producing each burgers pack is Rs.15. Each burger is sold for Rs. 20. Prepare a payoff matrix when 0, 100, 200, 300 or 400 demands of the burgers turn up on any given day. Prepare an opportunity loss table and hence find the optimum strategy.
Answer :
Word Count : 587
Let’s solve this step by step manually. Step 1: Define production levels and possible demands Production levels (strategies): 0, 100, 200, 300, 400 burgers Demand levels (states of nature): 0, 100, 200, 300, 400 burgers Step 2: Calculate profit (payoff) for each combination Profit formula: [ \text{Profit} = (\text{Selling Price} \times \min(\text{Production}, \text{Demand})) - (\text{Cost Price} \times \text{Production}) ] Selling price = Rs. 20 per burger Cost price = Rs. 15 per burger Now, we calculate profit for each combination: * Production = 0 All profits = 0 (no burgers produced) * Production = 100 * Demand 0 → Profit = (20*0 - 15*100 = -1500) * Demand 100 → Profit = (20*100 - 15*100 = 500) * Demand 200 → Profit = (20*100 - 15*100 = 500) * Demand 300 → Profit = 500 * Demand 400 → Profit = 500 * Production = 200 _______ ________ _______ ______ _____ ____.
__________ _____ ________ _______ ______ __________ ________.
___ _____ _______ _____ ________.
_____ _____ ______ ____ ____ ____ ________.
_______ ___ ____ __________ _________.
___ _________ _________ ___ __________ __________ ______ __________ __________ _____.
________ ____ _______ ______ __________ ________ ______ _____ __________ _____ ____ ____.
___ _____ ______ __________ _______ _________.
________ ________ ________ ____ _________.
___ __________ _____ ___ ____ ____ ____.
_______ ____ __________ ______ ___ __________ ____ ___ __________.
____ _______ _________ _______ ___ __________ _____.
_________ _________ ___ ______ ____ _________ ________ __________ __________ _________ ________ _______.
________ ___ ________ __________ _____ __________.
_____ ____ ____ ___ __________ ________ ___ ______ ____.
_______ __________ _____ _______ ____ _________.
______ ___ ____ _____ _____ ______ ___ _________ ______ ___.
_______ _______ _____ _____ _____ ______ _____ ____.
________ _______ ____ _________ __________ _________.
__________ __________ ______ ______ ____.
________ ___ ________ _________ _______ _____.
_________ ________ _____ ____ _______ ______.
_________ ___ ______ _________ ________ ________ ______ __________ ____ _________ _________ ___.
________ __________ _____ _____ __________ ___ _____ _________ ________ _________ ____.
________ ______ __________ ___ ____ ________ ___ ___ ____ _____ _________.
___ __________ ___ ________ _________ _________ ________ _________ ______.
_____ _________ ___ ___ _____ _______ ______ _____ ________.
_________ _____ __________ _______ __________ _______ __________ ________ _____.
____ ______ _____ _________ ______ ____ ___ ____ ___ _______ _______ __________.
____ ____ __________ _________ ___ _____ _________.
____ ___ _____ _____ _________ _______ _____ ___ ________ _________.
________ __________ ____ ____ _________ ___.
____ ______ _________ ___ _________ _______.
__________ _____ ______ _______ _____ ___ __________ _________.
____ ____ ____ ______ __________ ________ ___ _________ ________ ____ _______.
_____ ________ _______ __________ _____ _________ ______ ______ _____.
____ _________ _______ ____ ___ _______ ____ _______ ___ ________ ________ _____.
____ ________ _______ _____ _______ ________ _________ ______ _____ _________ _____.
_______ _________ ________ _______ ____ ____ __________.
_________ _____ __________ _________ _________ ________ ________.
____ ______ ____ _____ ______.
_________ _______ _____ ________ ____ _____ _______.
___ ___ ____ __________ __________ _____ __________ __________ _________.
______ _______ _____ _______ ______.
___ ____ ____ _________ _________ ________ ___ __________ _________ ______.
__________ ___ _____ _________ __________ _____ _______ ____ _________ ________ ____ ___.
_______ _______ ____ _____ ______.
_________ __________ ___ _______ ____ ___.
______ __________ _________ _______ ____ ______ _________ ___ _________ ____ ________.
____ __________ ___ _______ ________ __________ _______ _______ ___ _________ __________.
_____ ____ _______ _____ _________ ________ ____ ___.
_________ __________ __________ ______ ____ ___ _________ ___.
______ ________ _____ ___ ______ __________.
_________ ___ ________ _______ _______ ______ _____ _______.
__________ ____ ____.
Get Full Answer on WhatsApp
Let’s solve this step by step manually. Step 1: Define production levels and possible demands Production levels (strategies): 0, 100, 200, 300, 400 burgers Demand levels (states of nature): 0, 100, 200, 300, 400 burgers Step 2: Calculate profit (payoff) for each combination Profit formula: [ \text{Profit} = (\text{Selling Price} \times \min(\text{Production}, \text{Demand})) - (\text{Cost Price} \times \text{Production}) ] Selling price = Rs. 20 per burger Cost price = Rs. 15 per burger Now, we calculate profit for each combination: * Production = 0 All profits = 0 (no burgers produced) * Production = 100 * Demand 0 → Profit = (20*0 - 15*100 = -1500) * Demand 100 → Profit = (20*100 - 15*100 = 500) * Demand 200 → Profit = (20*100 - 15*100 = 500) * Demand 300 → Profit = 500 * Demand 400 → Profit = 500 * Production = 200 _______ ________ _______ ______ _____ ____.
__________ _____ ________ _______ ______ __________ ________.
___ _____ _______ _____ ________.
_____ _____ ______ ____ ____ ____ ________.
_______ ___ ____ __________ _________.
___ _________ _________ ___ __________ __________ ______ __________ __________ _____.
________ ____ _______ ______ __________ ________ ______ _____ __________ _____ ____ ____.
___ _____ ______ __________ _______ _________.
________ ________ ________ ____ _________.
___ __________ _____ ___ ____ ____ ____.
_______ ____ __________ ______ ___ __________ ____ ___ __________.
____ _______ _________ _______ ___ __________ _____.
_________ _________ ___ ______ ____ _________ ________ __________ __________ _________ ________ _______.
________ ___ ________ __________ _____ __________.
_____ ____ ____ ___ __________ ________ ___ ______ ____.
_______ __________ _____ _______ ____ _________.
______ ___ ____ _____ _____ ______ ___ _________ ______ ___.
_______ _______ _____ _____ _____ ______ _____ ____.
________ _______ ____ _________ __________ _________.
__________ __________ ______ ______ ____.
________ ___ ________ _________ _______ _____.
_________ ________ _____ ____ _______ ______.
_________ ___ ______ _________ ________ ________ ______ __________ ____ _________ _________ ___.
________ __________ _____ _____ __________ ___ _____ _________ ________ _________ ____.
________ ______ __________ ___ ____ ________ ___ ___ ____ _____ _________.
___ __________ ___ ________ _________ _________ ________ _________ ______.
_____ _________ ___ ___ _____ _______ ______ _____ ________.
_________ _____ __________ _______ __________ _______ __________ ________ _____.
____ ______ _____ _________ ______ ____ ___ ____ ___ _______ _______ __________.
____ ____ __________ _________ ___ _____ _________.
____ ___ _____ _____ _________ _______ _____ ___ ________ _________.
________ __________ ____ ____ _________ ___.
____ ______ _________ ___ _________ _______.
__________ _____ ______ _______ _____ ___ __________ _________.
____ ____ ____ ______ __________ ________ ___ _________ ________ ____ _______.
_____ ________ _______ __________ _____ _________ ______ ______ _____.
____ _________ _______ ____ ___ _______ ____ _______ ___ ________ ________ _____.
____ ________ _______ _____ _______ ________ _________ ______ _____ _________ _____.
_______ _________ ________ _______ ____ ____ __________.
_________ _____ __________ _________ _________ ________ ________.
____ ______ ____ _____ ______.
_________ _______ _____ ________ ____ _____ _______.
___ ___ ____ __________ __________ _____ __________ __________ _________.
______ _______ _____ _______ ______.
___ ____ ____ _________ _________ ________ ___ __________ _________ ______.
__________ ___ _____ _________ __________ _____ _______ ____ _________ ________ ____ ___.
_______ _______ ____ _____ ______.
_________ __________ ___ _______ ____ ___.
______ __________ _________ _______ ____ ______ _________ ___ _________ ____ ________.
____ __________ ___ _______ ________ __________ _______ _______ ___ _________ __________.
_____ ____ _______ _____ _________ ________ ____ ___.
_________ __________ __________ ______ ____ ___ _________ ___.
______ ________ _____ ___ ______ __________.
_________ ___ ________ _______ _______ ______ _____ _______.
__________ ____ ____.
Get Full Answer on WhatsApp
IGNOU NEWS
Assignment Submission Last Date Extended Till 30 June 2026 Click Here★★★IGNOU June 2026 TEE Date Sheet Released Click Here★★★