Calculate expected values for large and small expansions. What should Dairy May Farms do? EV small expansion = $enter expected value for small expansions in dollars EV large expansion = $enter expected value for large expansions in dollars Company sould opt select an option expansion.
Q: Tell us why it's so critical to integrate product requirements with production procedures.
A: Product requirement refers to the quality of a output which a firm wants from its production units…
Q: What is carbon footprint? How does your carbon footprint affect the environment and the climate?
A: Carbon footprints is a footprint of a firm or individual which shows it green house emission.
Q: future engineering company. Explain or have a short introduction of your chosen firm scope, and…
A: The project manager takes into account the level of authority each manager has while creating the…
Q: How important is growth? Can a company become non viable simply because it fails to maintain its…
A: Growth refers to the continous expansion of the company operations with increasing profits and…
Q: Why is responsibility significant? What makes it good?
A: Responsibility refers to assignment of a particular task or a work which an individual have to…
Q: Singsong Ltd has expanded its business operations and they are now manufacturing two types of TVs in…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: The items have a standard cost of $81/unit. The monthly demand for items is normally distributed…
A:
Q: Different levels of supply chain analytics include Descriptive, Predictive, Prescriptive, and…
A: Supply chain analytics includes:- Descriptive analytics:- This type of analytics provides a complete…
Q: How have Graeter’s owners used the four factors of production to build the business over time?
A: Factors of production are some of the resources that are used commonly to manufacture a product or…
Q: what factors aided Rockwater in it's smooth switch to the balance scorecrd?
A: A balanced scorecard is a performance management report which provides feedback on internal business…
Q: Explain the importance of knowing the time value of money in financing decisions and other concerns.
A: Time value of a money is a concept in which it is assumed that the money has no value ,but when the…
Q: a) Determine cost ol the current layoul, Plin A, Irom the dala above. b) One alternative is to…
A: Cost of layout = Total of (Workpieces moved * Distance between work areas* Cost of moving…
Q: a) A manufacturer wishes to create a flow line which will produce 555 pumps/day (8 hrs/ day). The…
A:
Q: what are the steps for purchasing an item according to the correct logistics system
A: Puchasing an item is a process in which a customer decides what amount of a product is to be…
Q: A landscaping company want to plan for the number of employees it needs to hire for upcoming year.…
A: Find the Given details below: Given details: Year Period Demand 2019 Winter 23 Spring 1000…
Q: I am taking in at my optimal bundle, and suddenly I get free goods of
A: Definitely it is beneficial for you because Tracking down exceptional and intriguing contraptions or…
Q: Between genetic strategic and grand strategy, which one is more important for a company to focus on?
A: Genetic startegy refers to a general strategy which is used by firm to position itself in the…
Q: True or False: If our explanatory variables do not vary, our model will produce no estimates
A: In regression analysis, there are explanatory variables and response variables. Explanatory…
Q: How has the COVID-19 pandemic affected the employment status of workers in various industries? Which…
A: Covid -19 pandemic has almost affected each and every aspect of mankind and animals in this world…
Q: se choose the most and least effective answers Statement Most Least Give the customer an example of…
A: Selling a service to a customer is not very easy because in today's world every customer is rational…
Q: What are typical performance testing errors?
A: Performance testing can be one of the most time-consuming parts of many jobs, but that doesn’t mean…
Q: The "5 Why" technique is useful in identifying... Six Sigma projects that should be prioritized.…
A: 5why tecnique is a tecnique in which is used to find out the root cause of a problem in order to…
Q: Valencia Products makes automobile radar detectors and assembles two models: LaserStop and…
A: The Linear programming problem is formulated in the form of equations and given in the question. We…
Q: Can you expand more on those advantages. Talk about them in more detail
A: Small businesses are businesses that are owned by private organizations. This type of business can…
Q: 5. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is…
A: An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the…
Q: What causes the "crowding-out effect"? Government borrowing and spending Foreign firms dominating…
A: Crowding out effect means that the goverment sector expenditure are so much higher that it is…
Q: a. Draw the precedence diagram. b. What is the probability that the project can be completed in 24…
A: A project schedule network diagram shows the sequence of the task that are performed to complete a…
Q: Why do we evaluate projects and what is usually evaluated?
A: Evaluation refers to a process of judging the value or process wheather it is performed in an…
Q: a. Simulate the machine breakdowns per week for 20 weeks, b. Compute the average number of machines…
A: Machine breakdown is when the specified machine does not work at all or does not operate in the…
Q: Project X has the data points below. The schedule performance index (SPI) for task P is .. Task BCWS…
A: Here, we first understand the values given for each task BCWS = Budgeted Cost of work scheduled -…
Q: alifornia. The assembly area is ava lach 10 for 200 minutes per day. (T making other products.) The…
A: Given: Time availability to produce Mach 10 is 200mins Required output rate r=60 units/day Time…
Q: To begin, what is a performance test? And what are the bottlenecks in performance testing?
A: A performance test is conducted to find out the evaluations of the a system in order to measure the…
Q: A company is producing a single product and is selling it through five agencies situated i different…
A: The assignment problems help in assigning the available resources to available jobs such that the…
Q: Quarterly demands is given for the past 3 years: Winter Spring Summer Fall Year 1 4800 4500 4100…
A: Find the Given details below: Given details: Winter Spring Summer Fall Year 1 4800 4500…
Q: KSK Company produces backpacks. The company's operations manager, Mehmet Akbalcık, would like to try…
A: Find the Given details below: Month Jan Feb Mar Apr May Jun Total Demand (Unit) 4800 5200 8500…
Q: A manufacturing company plans to expand their production and logistics facility into one of the…
A: Maximax criterion assists the decision maker in examining the maximum payoff. This is about making…
Q: explain in your own words the difference between in-sourcing and self-sourcing with the help of an…
A: Procurement in the supply chain is described as the means of obtaining services and goods. It is…
Q: Given the following information, what is the variance for activity G: Pessimistic (b) Most Probable…
A: Variance identifying based on the consideration of Optimistic and pessimistic times. Here, we can…
Q: Comparison charts are graphic visual representations of information, knowledge, or data to present…
A: The reasons for employees choosing to leave organizations are as follows - 1. Imbalance in work…
Q: 0.9 0.8 0.7 0.6 [ Select ] 0.5 V 0.4 Uniform distribution 0.3 0.2 Normal distribution 0.1…
A: In a uniform distribution, the curve is plotted such that the cumulative probability does not change…
Q: How does context play an important role in ethical arguments?
A: Ethical arguments are highly context-sensitive, meaning that the validity of an ethical argument…
Q: Examine the role of suppliers in new product development for the organisation and recommend measures…
A: Supplier management is described as the process through which an organization can collaborate,…
Q: Consider why earnings management is considered important by many managers and management teams.…
A: Earning management refers to the management of the profits of the firm in an appropriate manner in…
Q: What is the most appropriate inventory management strategy especially for a company like Nike…
A: Inventory management directs the procedure of ordering, holding, using, & selling a business…
Q: What is Direct Mapping, and how does it work?
A: Direct mapping is a procedure in a memory management system in which we are able to add a new memory…
Q: During a time study, when should a rating be given? Why is this important?
A: Time study can be stated as the organized or structured approach of directly monitoring and…
Q: nce of effective time management to successful study? Explain your answers and reasoning.
A: Effective time productively permits understudies to finish more significantly quicker, on the…
Q: Why is it easier to commit error than to act rightly?
A: Errors cannot be eliminated it can only be minimised by paying attention and focus to it.
Q: Discuss the factors of the macro-environment. Give examples for each of the factors.
A: Macro environment refers to the factors in an economy as a whole which impacts almost each and every…
Q: How should the resources be used to satisfy the demands of the customer in order to meet those…
A: Resources are the base for production process because without having resources its impossible for a…
Demand has grown at Dairy May Farms, and it is considering expanding. One option is to expand by purchasing a very large farm that will be able to meet expected future demand. Another option is to expand the current facility by a small amount now and take a wait-and-see attitude, with the possibility of a larger expansion in two years.
Management has estimated the following chances for demand:
- The likelihood of demand being high is 0.80.
- The likelihood of demand being low is 0.20.
Profits for each alternative have been estimated as follows:
- Large expansion has an estimated profitability of either $51,600 or $23,600, depending on whether demand turns out to be high or low.
- Small expansion has a profitability of $13,800, assuming that demand is low.
- Small expansion with an occurrence of high demand would require considering whether to expand further. If the company expands at that point, the profitability is expected to be $41,900. If it does not expand further, the profitability is expected to be $12,950.
(b) Calculate expected values for large and small expansions. What should Dairy May Farms do?
EV small expansion = $enter expected value for small expansions in dollars
EV large expansion = $enter expected value for large expansions in dollars
Company sould opt select an option expansion.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $77,900 if demand is low and $137,100 if demand is high. The net present value for one machine and low demand is $98,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $119,680. A second option is to subcontract; that would have a net present value of $115,650. The third option is to…Dawson Electronics is a manufacturer of high-tech control modules for lawn sprinkler systems. Denise, the CEO, is trying to decide if the company should develop one of the two potential new products, the Water Saver 1000 or the Greener Grass 5000. With each product, Dawson can capture a bigger market share if it chooses to expand capacity by buying additional machines. Given different demand scenarios, their probabilities of occurrence, and capacity expansion versus no change in capacity, the potential sale of each product are summarized in the included table. Click the icon to view the table. What is the expected payoff for the Water Saver 1000 and the Greener Grass 5000, with and without capacity expansion? The expected payoff for the Water Saver 1000 with the capacity expansion is $ integer.) The expected payoff for the Water Saver 1000 without the capacity expansion is $. (Enter your response as an integer.) ਗਿਆ (Enter your response as an The expected payoff for the Greener Grass…A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $2 million. Probability of rezoning: 0.60. If the land is rezoned, there will be additional costs for new roads, lighting, and so on of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an…
- A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $3 million. Probability of rezoning: 0.30. If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,100 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an…A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $3 million. Probability of rezoning: 0.50. If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,400 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 50 percent chance that she can sell the shopping center to a large department store chain for $6 million over her construction cost, which excludes the land; and there is a 50 percent chance that she can sell it…A manager is trying to decide whether to build a small,medium, or large facility. Demand can be low, average,or high, with the estimated probabilities being 0.25, 0.40,and 0.35, respectively.A small facility is expected to earn an after-tax net pres-ent value of just $18,000 if demand is low. If demand isaverage, the small facility is expected to earn $75,000; it canbe increased to medium size to earn a net present value of$60,000. If demand is high, the small facility is expected to earn $75,000 and can be expanded to medium size to earn$60,000 or to large size to earn $125,000.A medium-sized facility is expected to lose an estimated$25,000 if demand is low and earn $140,000 if demand isaverage. If demand is high, the medium-sized facility isexpected to earn a net present value of $150,000; it can beexpanded to a large size for a net payoff of $145,000.If a large facility is built and demand is high, earningsare expected to be $220,000. If demand is average for thelarge facility, the…
- A rock concert producer has scheduled an outdoor concert. The producer estimates the attendance will depend on the weather according to the following table. Weather Attendance Probability wet, cold 4000 0.1 wet, warm 25000 0.1 dry, cold 30000 0.1 dry, warm 45000 0.7 (a) What is the expected attendance? (b) If tickets cost $ 30 each, the band will cost $ 250,000, plus $ 55,000 for administration. What is the expected profit?A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on the approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $5 million. Probability of rezoning: 0.80. If the land is rezoned, there will be additional costs for new roads, lighting, and…A store is evaluating two options: expand to a new location stay and do nothing in current place for the next five years The decision process includes the following: Moving to the new site: would cost $500,000 annual returns with strong growth = $3 million; with weak growth = $2 million Doing nothing: annual returns with strong growth = $2 million; with weak growth = $1.5 million Strong growth has a 70% probability and operating costs for all other options are equal. Draw a decision tree of the problem and determine the best solution with highest expected value.
- In considering a capacity expansion, we have two alternatives. The first alternative is expected to cost $1,000,000 and has an expected profit of $500,000 over the next three years. The second alternative has an expected cost of $800,000 and an expected profit of $450,000 over the next three years. Which alternative should we select, and what is the expected value of the expansion? Assume a 10 percent interest rate.Problems 2 Helen Murvis, hospital administrator for Portland General Hospital, is trying to determine whether to build a large wing onto the existing hospital, a small wing, or no wing at all. If the population of Portland continues to grow, a large wing could return $150,000 to the hospital each year. If the small wing were built, it would return S$60,000 to the hospital each year if the population continues to grow. If the population of Portland remains the same, the hospital would encounter a loss of $85,000 if the large wing were built. Furthermore, a loss of $45,000 would be realized if the small wing were constructed and the population remains the same. Unfortunately, Helen does not have any information about the future population of Portland * Develop a decision table for this problem. * Determine the best decision using the following decision criteria 1. Мaximax 2. Маximin 3. Minimax Regret Hurwicz (use a coefficient of realism of 0.75) 5. Equal likelihood 6. Expected Value 7.…Suppose we are considering the question of how much capacity to build in the face of uncertain demand. Assume that the cost is $20 per unit of lost sales due to insufficient capacity. Also assume that there is a cost of $7 for each unit of capacity built. The probability of various demand levels is as follows: Demand—X Units Probability of X 0 .05 1 .10 2 .15 3 .20 4 .20 5 .15 6 .10 7 .05 a. How many units of capacity should be built to minimize the total cost of providing capacity plus lost sales? b. State a…