Federated Electronics Ltd manufactures display screens and m

Federated Electronics, Ltd., manufactures display screens and monitors ofr computers and televisions, which it sells to companies around V the world. It wants to construct a new warehouse and distribution center in Asia to serve emerging markets there. It has identified potential sites in the port cities of Shanghai. Singapore. Pusan. Kaohsiung. and Hong Kong and has estimated the possible revenues ofr each (minus construction costs, which are higher in some cities like Hong Kong). At each site the projected revenues are primarily based on these factors: (1) the economic conditions at the port including the projected traffic, infrastructure, labor rates and availability, and expansion and modernization: and (2) the future government situation, which includes the political stability, fees, tariffs, duties, and trade regulations. ofllowing is a payoff table that shows the projected revenues (in $ billions) ofr six years given the ofur possible combinations ofr positive and negative port and government conditions: Determine the port city Federated should select ofr its new distribution center using the ofllowing decision criteria: Maximax Maximin Equal likelihood Hurwicz (alpha =.55)

Solution

for all possibilities pusan is the best choice. However port -ve factor need to be elaborated.