# ABC is a supplier of chemical products and equipment for industrial processes. One of their…

ABC is a supplier of chemical products and equipment for industrial processes. One of their products is the High Tech-7 (HT-7) for which they normally maintain inventories every week of 11, 12 or 13 boxes of 10 50-fluid ounce containers. For each box sold, a profit is obtained as indicated in the table below. Because the HT-7 is very unstable, it has a very short life and if a box has not been sold at the end of the week, it should be unsubscribed. Since its cost is as indicated in that table, a loss of exactly that amount is incurred if there is a need to remove the box. The probability of selling 11 boxes is 0.45, for 12 boxes it is .35 and for 13 boxes it is .20.

Utility per box Cost per box

\$ 36 \$ 57

a) Prepare a decision table.

```You must prepare a table of Supplies vs Demand:

Then analyze each possible combination and calculate for each of them the costs incurred and the income and profits minus the losses incurred. .
Once the totals for each alternative / decision have been calculated, calculate the EMV```

b) Which course of action is the most recommended?

c) A product is being developed that stabilizes HT-7 and in that case there is no need to eliminate the excess product at the end of the week. How does the recommended course of action change?

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