Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. product alpha has annual sales of 1000 units and a contribution of $2,500; it is in the introductory stage. product bravo has annual sales of 1,500 units and a contribution of $3,000; it is int the growth stage. Product Charlie has annual sales of 3,500 and a contribution of $1,750; it is in the decline stage.
5.1 data:
Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. product alpha has annual sales of 1000 units and a contribution of $2,500; it is in the introductory stage. product bravo has annual sales of 1,500 units and a contribution of $3,000; it is int the growth stage. Product Charlie has annual sales of 3,500 and a contribution of $1,750; it is in the decline stage. *See that attached image*
Use the data in solved problem 5.1 to examine what happens to the decision if Sarah King can increase all of design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added
![is for 100,000 units.
bability of yielding 60 good
ability of yielding 65 good
cost $1,000,000.
bability of yielding 64 good
of yielding 59 good units per
0.
cost $75. Each good moni-
s are destroyed and have no
al costs in this problem.
EMV = $575,000
102-12/21 579
Design A
Design B
ermine
the payoff associated with each branch. The resulting tree is
shown in Figure 5.14.
ervices Selection
For design A:
e analysis for the follow-
For design B:
EMV(design A) = (.9)($500,000) + (.1)($1,250,000)
= $575,000
=
(.9)
EMV(design B)
Mean Yield 60
(.8)($750,000) + (.2)($0)
$600,000
The highest payoff is design option B, at $600,000.
(.1)
Mean Yield 65
(.8)
wilsua
Mean Yield 64
(.2)
EMV = $600,000) Mean Yield 59
-
=
Sales 60,000 at $150
Mfg. cost 100,000 at $75
Design cost
6m
bris Sales 65,000 at $150
Mfg. cost 100,000 at $75
Design cost
the problem may be solved with POM for Windows and/or Excel OM.
5
Sales 64,000 at $150
Mfg. cost 100,000 at $75
Design cost
to s
Sales 59,000 at $150
Mfg. cost 100,000 at $75
Design cost
$9,000,000
-7,500,000
-1,000,000
$500,000
$9,750,000
-7,500,000
-1,000,000
$1,250,000
$9,600,000
-7,500,000
-1,350,000
$750,000
$8,850,000
-7,500,000
-1,350,000
0
the life cycle, identify a reasonable operations strategy fo
each:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01105c61-16b2-4ed7-8b58-345531cf6846%2F3f1f64ae-ac62-45f2-a3ae-f256a4b6d0c1%2Feoa9rig_processed.jpeg&w=3840&q=75)
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