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Tee Shirts
Tee Shirts Unlimited Is Providing Shirts for an Upcoming

Question 53

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Tee shirts
Tee Shirts Unlimited is providing shirts for an upcoming sports tournament.They assume demand will be either 2000,3000,4000,or 5000 shirts and they need to decide whether to produce 2000,3000,4000,or 5000 shirts.The payoff for each production/demand combination is shown in the table below.
 PAYOFFE  Demand  Altematives 20003000400050002000$10,000$10,000$10,000$10,0003000$3,000$15,000$15,000$15,0004000$4,000$8,000$20,000$20,0005000$11,000$1,000$13,000$25,000\begin{array} { | c | c | c | c | c | } \hline \text { PAYOFFE } & & \text { Demand } & & \\\hline \text { Altematives } & \mathbf { 2 0 0 0 } & \mathbf { 3 0 0 0 } & \mathbf { 4 0 0 0 } & \mathbf { 5 0 0 0 } \\\hline \mathbf { 2 0 0 0 } & \$ 10,000 & \$ 10,000 & \$ 10,000 & \$ 10,000 \\\hline \mathbf { 3 0 0 0 } & \$ \mathbf { 3 , 0 0 0 } & \$ 15,000 & \$ 15,000 & \$ 15,000 \\\hline \mathbf { 4 0 0 0 } & - \$ 4,000 & \$ \mathbf { 8 , 0 0 0 } & \$ 20,000 & \$ 20,000 \\\hline \mathbf { 5 0 0 0 } & - \$ 11,000 & \$ 1,000 & \$ 13,000 & \$ 25,000 \\\hline\end{array}
-How many shirts should be produced using the maximin criterion?

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Produce 20...

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