A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. Probability Wind-up action Pneumatic action Electrical action Light Demand 0.25 $325,000 $300,000 -$400,000 Moderate Demand 0.45 $190,000 $420,000 $240,000 Heavy Demand 0.3 $170,000 $400,000 $800,000 a. Use the Maximax, Maximin, and Equally Likely criterion to determine the best alternative? b. Calculate the EMV for each decision alternative? b. Which action should be selected? c. What is the expected value with perfect information? d. What is the expected value of perfect information?
Q: Mountain States Electric Service is an electrical utility company serving several states in the…
A: If the utility replaces the PCB transformer- Cost $85,000 If the company decides to keep the…
Q: Why is payback often used as the sole method of analyzing a proposed small project? a. It is the…
A: The time needed to recoup the original investment in an investment is known as the payback period.…
Q: The following jobs are waiting to be processed at a small machine center. JOB DUE DATE DURATION…
A: Find the Calculation methods below: Step 1: Arrange the job order based on the longest processing…
Q: 1. Explain 4 different configuration of supply chain with the type of product each configuration…
A: Note: As per guidelines, only 1 question can be answered at a time. The first one has been answered.…
Q: Tombro Industries is in the process of automating one of its plants and developing a flexible…
A: Given data: Month 1 2 3 4 Wait time per order before the start of production 9 11.5 12 14…
Q: 1. A company would like to invest in the metal stock market, and the maximum available investment is…
A: Given data is Metal Interest return ($) Maximum investment possible Gold 0.45 5,600,000…
Q: What is the method of procurement, where it will be applicable give examples?
A: Procurement is a process of identifying, selecting, and accepting a vendor or supplier with certain…
Q: Using PERT, Adam Munson was able to determine that the expected project completion time for the…
A: For your better Understanding:
Q: Tesla Corporation has three different factories (A, B and C) where they make Premium Electric…
A: This is a special model of transportation where goods/services are supplied/provided to the ultimate…
Q: true or false? Just type T or F after the arrow. 1. An employer must report every workplace injury…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: Article 1: South Africa Ready-To-Drink (RTD)/Iced Tea Industry Landscape Report 2021 In South…
A: SCO is consist of two types of elements, strategic and structural. Strategic elements are…
Q: t is estimated that hundreds of thousands, if not several million, PCs are still running Windows…
A: Vendor managed inventory: It is an approach in which the inventory levels (requirement of the…
Q: Boston Electric Generators has been getting many complaints from its major customer, Home Station,…
A: The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a…
Q: olio, programme and project with examples. Reference in APA style
A: Most corporate organizations or companies spend a substantial amount of time working on projects,…
Q: In Exercises 9-20, use the simplex method to solve the given linear programming problem. (In each…
A: Given LP- Max Z = x1 - x2 + 2x3Subject to-2x1 + 2x2≤8x3≤5x1,x2,x3≥0
Q: One unit of A is made of three units of B. one unit of C. and two units of D. B is composed of two…
A:
Q: Problem 15-5 (Algo) A manufacturer has decided to locate a new factory in northwestern United States…
A: Given-
Q: Write the objective function. Refer to a solved problem, and the chapter. What are you trying to…
A: The transportation model is used to calculate the minimum cost of the route by selecting different…
Q: There are many kinds of packaging. For consumer packaging, cardboard and plastic are the two most…
A: Definition The wrapping of the product (used for the transportation of goods) containing the…
Q: , and processes used by Toyota Motor company? 3- what is an overall view of the quality systems?…
A: The Japanese automaker Toyota Motors was founded in 1933 and has its headquarters there. The…
Q: 6/ A company may have many Vendors depending on its size and industry in which it operates. Explain…
A: Organizations managing various operations in market cannot operate in isolation or all by…
Q: 1. Explain the use of charts to investigate the sources of process variation: Tom Sharkey is the…
A: Given data: Complaint Frequency Problem not corrected 38 Error on invoice 8 Unfriendly…
Q: Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are…
A: Also, the demand for 550 units of component 1 must be satisfied. Convert available hours in minutes…
Q: How does operation management affects the profitability of a business?
A: Operation management is performed in each manufacturing organization. It all deals with the…
Q: What is the service rate for the service technician? minutes/unit What is the labor utilization…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: In your own words, describe the differences between quantitative risk assessment and qualitative…
A: Risk assessment is an important practice to be carried out by every business company as gaining…
Q: A company manufactures x units of Product A and y units of Product B, on two machines, I and II. It…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less,…
A: Find the Calculations below: The maximum and minimum values for each model are shown in the above…
Q: Problem 14-17 (Algo) Meritor, a company that makes muffler assemblies for the automotive industry,…
A: Given- Demand (D) = 18 assembliesLead Time (L) = 2 hoursCatalytic converter (C) = 15Safety Stock (S)…
Q: A production process at Kenneth Day Manufacturing is shown in the figure below. The drilling…
A: Given data: Sawing = 6 units/hr Sanding = 2.5 units/hr Drilling = 1.8 units/hr Welding = 7…
Q: If ending inventory is 105 units, what is the weighted average of each unit in inventory?
A: Inventory management is the process of ordering, storing, using, and selling the inventory of the…
Q: The process for renewing a driver's license at the Archer County Courthouse is as follows. First,…
A: Given data: No. of clerks = 3 Total time taken by the clerk = 6+1 = 7 minutes No. of typists = 3…
Q: Employee Wanda Trews was working in the manufacturing facility at Coves Industrial. The employees of…
A: The detailed solution is given in Step 2
Q: An ?̅ control chart with three-sigma control limits has UCL = 48.75 and LCL = 42.71. Suppose that…
A: Given that: UCL = 48.75 LCL = 42.71 Standard deviation = 2.25 Remember the formula: UCL = μ + (3*…
Q: South Africa’s indigenous rooibos tea farmers seek a fairer deal When South African rooibos tea…
A: SCO is consist of two types of elements, strategic and structural. Strategic elements are…
Q: The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements…
A: Formulae used: Average monthly demand = Sum of demandNo. of months For ending inventory and…
Q: At Quick Car Wash, the wash process is advertised to take less than 8 minutes. Consequently,…
A: R-chart is the type of control chart which is used to analysis the process variability. Sample…
Q: What is the minimum cost of crashing the following project at Sawaya Robotics by 4 days?…
A: Activity Normal Time Crashed Time Normal cost Crashing cost Time available for crashing Cost of…
Q: The Kanban calculations do not factor in an allowance for safety stock. True False
A: Explanation : The kanban calculations involves the allowance for safety stock . So the given…
Q: What could Convention Bureau do to help attract exhibition event to their destination?
A: Destination display and promotion :Convention Bureaux might help with sorting out promotional…
Q: Assume that you are working on a project and you are advised to apply the six-step process and based…
A: The six-step process is the beginning points for all projects in order to ensure maximum output and…
Q: The AC company decides to open a new factory to satisfy increasing demand. They already have four…
A: Given data-
Q: Read the article below and answer the questions that follow. South Africa’s indigenous rooibos tea…
A: Supply chain Linkages: Supply chain is defined as there is a chain between from raw…
Q: If D = 8,500 per month, S = $46 per order, and H = $2.00 per unit per month, a) What is…
A: Economic Order Quantity is a vital tool that may assist a business owner or manager in making more…
Q: Management of a T-shirt manufacturer belleves if the company applies lean principles, then cycle…
A: Traditional Lean Cutting and the sewing processing 23 23…
Q: Southland Corporation's decision to produce a new line of recreational products has resulted in the…
A: Decision-making is influenced by an organization as per the degree of certainty involved in this. In…
Q: Honey is a technology company that provides online coupons to its subscribers. Honey's analytics…
A: Given data: Honey receives revenue when customer use coupon = $1 Honey incurs a cost due to the…
Q: a) Sequence the jobs according to LPT. According to the LPT rule, the sequence of jobs should be 10,…
A: Scheduling is the process of arranging production activities in order to complete the manufacturing…
Q: 1) Activity that should be crashed first to reduce the project duration by 1 day is ▼ A B C 2)…
A: A network diagram related to the project shows the sequence of the task that is performed to…
Q: After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the…
A: Find the North West Corner Calculations below:
kindly do solve accurately and exact with correct formuas thanks..with complete steps
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
- The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent on the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): (bold and underline is answer/ --- = needs answer) State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.40, P(s2) = 0.40, and P(s3) = 0.20. Do not round your intermediate calculations. (a) Use a decision tree to recommend a decision. Purchase Component Part (b) Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand. Enter your answer in thousands dollars. For example, an answer of $200 thousands should be entered as 200,000. Gorman should attempt to obtain a better estimate of…A company wants to produce a souvenir with a marketing life of sixmonths. Uncertainty surrounds the likely sales volume as well as thefixed costs of the venture as shown below:Sales units Probability Contrn. /unit Probability Fixed cost Probability100 000 0.3 K 7 0.5 K400 000 0.2 Page 5 of 80 000 0.6 K 5 0.5 K450 000 0.560 000 0.1 K500 000 0.31.0 1.0 1.0 Determine the expected value of the contributionThe Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): Decision State of Nature Alternative Low Demand (S1) Medium Demand (S2) High Demand )S3) Manufacture, d(1) -20 40 100 Purchase, d(2) 10 45 70 The state-of-nature probabilities are P s1= 0.35, P s2= 0.35, and P s3= 0.30 Use expected value to recommend a decision.
- A. A company wants to produce a souvenir with a marketing life of six months. Uncertainty surrounds the likely sales volume as well as the fixed costs of the venture as shown below: Sales units Probability Contrn. /unit Probability Fixed cost K7 K5 100 000 0.3 80 000 0.6 60 000 0.1 1.0 0.5 0.5 1.0 Determine the expected value of the contribution K400 000 K450 000 K500 000 Probability 0.2 0.5 0.3 1.03. The manager for a manufacturing company must recommend whether to construct a large plant, construct a small plant or do nothing. He estimates the long-run profits in $ as follows: State of Nature Alternative Good Average Poor Market($) Market ($) Market ($) Construct a 100,000 35,000 -60,000 large plant Construct a 75,000 25,000 -40,000 small plant Do nothing -5,000 0 0 Probability 25% 50% 25% Solve using: A. Expected Opportunity Loss B. Expected Value of Perfect InformationThe owner of a retail store that specializes in school supplies plans to buy TV ad time during the broadcast of Wheel of Fortune, a game show that has a rating of 20. It reaches 15,000 people in the primary target audience and a 30-second spot costs $500. What is the cost per thousand (CPM) of the show? 1) $33 2) $133 3) $30 4) $23 5) $750 Dravinur Dnn
- Companies can use the expected value method to estimate variable consideration when... The contracts has two possible outcomes A company has a large number of contracts with similar characteristics A company can use the most likely amount in a range of possible outcomes A company has a smaller number of contracts with similar characteristicsThe Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. A test market study of the potential demand for the product is expected to report either a favourable (F) or unfavourable (U) condition. The relevant conditional probabilities are as follows: P(F|S1)=0.10 P (U|S1)=0.90 P(F|S2)=0.40 P (U|S2)=0.60 P(F|S3)=0.60 P (U|S3)=0.40 Decision tree leading to market study/ prediction of favorable…The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. A test market study of the potential demand for the product is expected to report either a favourable (F) or unfavourable (U) condition. The relevant conditional probabilities are as follows: P(F|S1)=0.10 P (U|S1)=0.90 P(F|S2)=0.40 P (U|S2)=0.60 P(F|S3)=0.60 P (U|S3)=0.40 Compute the probabilities by completing the table Sate of…
- The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. A test market study of the potential demand for the product is expected to report either a favourable (F) or unfavourable (U) condition. The relevant conditional probabilities are as follows: P(F|S1)=0.10 P (U|S1)=0.90 P(F|S2)=0.40 P (U|S2)=0.60 P(F|S3)=0.60 P (U|S3)=0.40 A.Compute the probabilities by completing the table Sate of…Cost Planning; Gasoline Prices In June 2008, when gasoline prices were at an all-time high(more than $4 per gallon), Chrysler Motor Company promoted its Jeep vehicle with the offer of either$4,500 off the price of the vehicle or the guarantee that the buyer would not pay more than $2.99 pergallon of gas for the next 3 years (the details of the guarantee could vary by dealer).Required1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined city/highway and that at thetime of purchase, you expected gasoline prices to average $5 per gallon over the next 3 years. How manymiles would you have to drive the vehicle in the next 3 years to make the guarantee more attractive thanthe $4,500 discount?The White Fish company is launching its new food for sale in supermarkets throughout Illinois. The sales department is convinced that its spicy fish dip will be a great success. The marketing department is considering an intensive advertising campaign. The advertising campaign will cost $1,900,000 and if successful (70% chance) produce $9,600,000 in added revenue. If the campaign is less successful (30% chance), the added revenue is estimated at only $4.200,000. If no advertising is used, the revenue is estimated at $6,500,000 if customers are receptive (with probability 0.75) and $3.200,000 with probability 0.25 if they are not receptive. a. Draw the associated decision tree. b. Roll Back Tree: Should White Fish invest in an intensive advertising campaign? c. Perform sensitivity analysis on probability of successful advertising campaign, which is now 0.7. Detemine the range of the probability of success for which the current decision is still the best choice. d. Perform sensitivity…