IGNOU MSTE 1 2026 - A restaurant produces fresh burgers for its customers every

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.

19 Jan 2026

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 * Demand 0 → (20*0 - 15*200 = -3000) * Demand 100 → (20*100 - 15*200 = -1000) * Demand 200 → (20*200 - 15*200 = 1000) * Demand 300 → (20*200 - 15*200 = 1000) * Demand 400 → 1000 * Production = 300 * Demand 0 → (20*0 - 15*300 = -4500) * Demand 100 → (20*100 - 15*300 = -1500) * Demand 200 → (20*200 - 15*300 = 500) * Demand 300 → (20*300 - 15*300 = 1500) * Demand

________ _________ __________ ___ ______ __________ _______ ____ ______.
_____ __________ ________ _______ ________.
____ __________ ________ ________ __________ __________ ________ ____ ______.
________ ___ ____ __________ ______ ______ __________ ________.
_________ ________ _______ ___ ____.
_________ ___ _________ _____ ________.
________ _________ __________ ________ __________ ______ ___ ___ _________ __________.
_____ ______ ___ ______ _____ _______ _________.
_________ ______ _______ ______ __________ _________ ____ ________ ___ ___.
____ ___ _________ ______ _______ _______ _______ ___ __________ _________.
________ __________ _________ _______ ________.
_________ _____ _______ ___ ____ ______ _____ _____.
_______ _______ ________ __________ _________ ____ ____ ______ _________ _______ __________ _______.
__________ _____ ________ ______ ______.
_____ ________ _______ __________ ________ ____ _____ __________.
__________ ____ __________ __________ ________ ___ ________ ___.
___ _____ ___ ________ __________ ___ __________ __________ ____ _______.
______ ______ _______ ____ _______ ___ ___ _______.
________ ____ ________ _______ ____ _________ _________ _________ _________ _________ __________ _______.
_______ ______ ______ ______ __________ __________ ________ ____ ______ __________ ___.
_______ _______ __________ ____ _____ _____ _____ _____ __________ _________.
_____ ____ ________ ___ __________ _________ ________ _________ ______ __________.
___ __________ ________ _________ __________ _______ ___ _______ _________ _______.
___ ________ ___ _________ ________ ____ ____.
______ _____ ____ ___ __________ _______.
_______ _________ _________ _________ __________ ________ __________ __________.
________ _________ _______ _______ ____ _______ _____.
___ ________ _____ ____ __________ ______ ________ _______.
___ ____ __________ ____ _______ ________ _____ _____ __________.
__________ __________ ___ ________ __________.
______ _________ ______ ________ ______.
________ _____ __________ ____ _____ ____ _______ ____ _______ ____ _______.
__________ ____ ___ ___ ___ ____ ______ ____ ___ ____.
________ _______ ___ ______ ____ _________ ______.
____ _________ ______ _____ ______ ___.
______ ______ _____ _______ ____ __________ ___ _________ __________ ________ ________ _________.
_____ ________ ______ ________ ____.
_____ ___ _______ ____ ___ __________ _______.
_________ ____ ___ ________ _______ __________ __________ _______ ____ _____.
________ _______ _________ _________ _____ _____ ___ ________ ______ ______.
_______ _________ ___ _________ ______ _________ ________.
_________ _______ ______ ____ __________ ____ ______ _________.
____ __________ ________ ________ _______ ______ _________ _______ _________.
____ __________ ____ _________ __________ ___.

IGNOU ACADEMY

Your IGNOU journey, made easier.

Solved Assignments
Study Notes
Guess Papers
Question Papers

Call Us WhatsApp

STUDY • PREPARE • SUCCEED

Skip in 10

Related Questions

Hour	1	2	3	4
1	50	52	51	49
2	51	50	53	52
3	49	50	48	51
4	52	54	53	51
5	50	49	51	50
6	53	52	54	55
7	48	49	50	47
8	51	52	50	51
9	54	55	53	54
10	50	51	49	50

Sample No.	Defective Pumps	Sample No.	Defective Pumps	Sample No.	Defective Pumps
1	5	6	0	11	6
2	6	7	4	12	1
3	3	8	8	13	10
4	2	9	2	14	2
5	1	10	2	15	1

	Player B
		I	II	III	IV	V
Player A	I	2	4	3	8	4
	II	5	6	3	7	8
	III	6	7	9	8	7
	IV	4	2	8	4	3

IGNOU Solved Assignments Assignments Ignou Projects Project Previous Year Solved Exam Papers Notes Notes Sample Question Papers Sample Question Papers

Hour	1	2	3	4
1	50	52	51	49
2	51	50	53	52
3	49	50	48	51
4	52	54	53	51
5	50	49	51	50
6	53	52	54	55
7	48	49	50	47
8	51	52	50	51
9	54	55	53	54
10	50	51	49	50

Hour	1	2	3	4
1	50	52	51	49
2	51	50	53	52
3	49	50	48	51
4	52	54	53	51
5	50	49	51	50
6	53	52	54	55
7	48	49	50	47
8	51	52	50	51
9	54	55	53	54
10	50	51	49	50

Hour	1	2	3	4
1	50	52	51	49
2	51	50	53	52
3	49	50	48	51
4	52	54	53	51
5	50	49	51	50
6	53	52	54	55
7	48	49	50	47
8	51	52	50	51
9	54	55	53	54
10	50	51	49	50