Susan Solomon has been thinking about starting her own fuel station, but Susan's problem is to decide how large the station should be. The annual returns depend on both the size of the station and a number of market factors related to the oil industry and the demand for fuel. After careful analysis, Susan developed the following table: Fair Market (Rand) Poor Market (Rand) Size of the station Good Market (Rand) Small 50 000 20 000 -10 000 Medium 80 000 30 000 -20 000 Large 100 000 30 000 -40 000 Very Large 300 000 25 000 -160 000 For example, if Susan constructs a small station and the market is good, she will realise a profit of R50 000. Use the minimax regret and Hurwics (a=0.8) to assist Susan with her decision.
Q: Kindly write example and explain how they are used: 5. FISHBONE CHART 6. STATISTICAL PROCESS CHART
A: There are many types of diagrams and charts which are used by an organization to find out the…
Q: Is dynamic programming used in any real-world contexts?
A: Dynamic programming is the mathematical and computer programming method. This method is all related…
Q: Explain: Peak load pricing, Preprocessing strategy, Arrival process, Unstable queue
A: These terms are important to understand when learning about queuing theory and how to manage queues…
Q: "In conclusion, I congratulate the country upon the fraternal spirit of the people and the…
A: The question is related meaning of Manifestation
Q: c) Jay Calahi is to supply gravel for projects located in three different sites. He has three…
A: This is a transportation problem to minimize costs.
Q: 9. The Ace Manufacturing Company has orders for three similar products: Orders Product (units) A…
A: Given data is The capacity is more than orders so in the linear programming model there is no need…
Q: Please explain the third phrase of this question, thank you.
A: The global media market is a huge industry, with more than $1 trillion of revenue generated…
Q: Question 4: You have six tasks to which need to be completed as soon as possible. Each task requires…
A: The assignment procedure helps to assign the available resources to the available tasks such that…
Q: The following payment period ratios, averaged, for borrowings were reported for the year 2021 y five…
A: Payment period ratio indicates the time required to repay the borrowings. In other words it is the…
Q: Ql: For the project listed below, find the following items: 1- Total project finishing time, 2-…
A: Aa per our guidelines, we are supposed to answer only three sub-parts if multiple sub-parts are…
Q: with quality tools and techniques indicate which tool can be use to assist in analyzing the…
A: In the healthcare industry, quality is defined as the right treatment, at right time, to the right…
Q: Classify each of the following as nominal, ordinal, interval, or ratio data and explain. a. the…
A:
Q: Number of Accidents 25 45 64 95 Using the least-squares regression method, the trend equation for…
A: NOTE: We are allowed to do only one question at a time. The regression equation is of the form:…
Q: Could you please explain the Service Process Structuring
A: The service process structuring is done as a part of the process strategy, the main objective is to…
Q: Is there any use for dynamic programming in the "real world"?
A: Dynamic programming is a technique used to efficiently solve the problems having overlapping…
Q: manufacturer operates 8 hours per day for 340 days per year, and has a demand of 2,000 units per…
A: Target Set up cost = (Annual demand/EOQ)*setup cost per hr.
Q: 1. The primary argument for corporate social responsibility states that for business to have a…
A: Yes, The statement is correct, because CSR is an automatic plan of action that assists an…
Q: What are your recommendations regarding the food safety guidelines that can be used by online…
A: Online selling of food is nowadays a big business, as there are many customers who prefer to buy…
Q: Discuss the goals and planning approach of urban renewal and community development:
A: The goal of urban renewal community:Urban regeneration aims to revitalize portions of an…
Q: • Q3: Draw the network diagram and determine the critical path for the following project: Activity…
A: The path having the longest duration is Critical Path. A path in a project network is called…
Q: The AC company decides to open a new factory to satisfy increasing demand. They already have four…
A: Logistics management is described as the process or means of seamlessly moving raw materials, parcel…
Q: a short introduction to the Toyota Production System (TPS) that identifies its key principles that…
A: Production is the process where inputs are combined together to have the desired output. It includes…
Q: The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners…
A: Foremost cost-effective quantity of an item to acquire at a given moment is the optimal order…
Q: For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for…
A: EOQ tells the optimal quantity to be ordered each time so that the cost is minimised.
Q: Explain THREE (3) ways in which an agency may come into existence
A: In the current business circumstances, the agency system is very attractive, popular, and well…
Q: Summarize the argument used to explain why the concept of corporate social responsiveness is an…
A: The summarisation of the concept of corporate social responsiveness is an improvement over corporate…
Q: 1. Do you agree that the evaluator's bias may cause the evaluation program to fail? explain
A: Biased evaluation is unfair judgment for a person's job. It is a tendency to judge someone on their…
Q: MMS Associates is a telecommunications service provider. The company is currently redesigning its…
A: Given data of weights is The current plan is shown below. The proposed plan is shown below.
Q: discuss below 3 types of suppliers 1. Local suppliers 2. National suppliers…
A: 1. Local Supplier Any local firm that operates in domestic sourcing, production, and distribution…
Q: What is the cost difference if the bar takes the discount?
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: Many research studies are said to be taking a mixed approach of qualitative and quantitative and…
A: By taking a mixed approach of qualitative and quantitative the researcher have a wide perspective of…
Q: Models for forecasting?
A: Forecasting models are one of the numerous methods used by organizations to forecast sales, supply…
Q: Jeff Kaufmann's machine shop sells a variety of machines for job shops. A customer wants to purchase…
A: The decision tree is a visual representation of decision-making alternatives. The square node…
Q: Q1: For the project listed below, find the following items: 1- Total project finishing time 2-…
A: A critical path indicating the longest duration path which representing minimum time required to…
Q: How is the role of a Project Management Office (PMO) different in an agile environment.
A: A project management office (PMO) is very much an internally and externally entity that establishes,…
Q: Draw activity network of the project. Crash the activities step by step until all paths are critical
A: Project crashing is a process which helps to reduce the total completion time using additional costs…
Q: Describe and discuss the various techniques that you believe Unilever uses to develop and manage its…
A: Unilever, founded in 1930, has been listed as one of the FTSE 100’s largest companies since 2010.…
Q: • Q2:Find out the completion time and the critical activities for the following project: D 20 E H 11…
A: The project network diagram is the diagram which shows the project activities and their duration to…
Q: 11. The distribution system for the Herman Company consists of three plants, two warehouses, and…
A: As per the given data, the products will move from plants to the warehouses and then to the…
Q: In process improvement efforts, cost of quality is a means to quantify the total cost of…
A: The following are some probable causes of high quality-related costs: 1. Poor quality leads in…
Q: Advise how IBM management can be effective in applying scientific management theories up to…
A: Scientific management is a theory of management that was developed in the early 20th century. The…
Q: Understand the importance of sustainable supply chain management to modern business operations
A: The supply chain is the system in which people, processes, information, and resources are used to…
Q: How should Walmart rationalize its seafood supply chain to reduce costs and promote sustainability
A: Walmart purchased around $750 million in seafood from different sources around the globe in 2007.…
Q: You process four product types using four resources (Resource A, Resource B, Resource C and Resource…
A: Production management is described as the means and ways of managing the different business…
Q: Does the real world even have a need for dynamic programming?!
A: Dynamic Programming is used to divide a complex problem into minor subproblems so the results can be…
Q: Using the following project information, calculate the variance for each of the project activities.…
A:
Q: Find the x- intercept and y- intercept of each constraints and graph.
A: Linear programming is a mathematical technique that is also used in operations management…
Q: What do the costs indicate she should set her service level at? (Ignore Goodwill)
A:
Q: The demand for a product in a UPS warehouse follows a normal distribution , for which the mean is…
A: Find the Given details below: Given details: Demand Mean 1000 Units per month Standard…
Q: The evolution of one company affecting the evolution of other companies this is exemplified by the…
A: Co-evolution is a key concept in management and has also been applied to fields such as economics,…
Step by step
Solved in 2 steps with 3 images
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands) depends on demand as follows. DEMAND STAFFING OPTIONS HIGH MEDIUM LOW Own Staff 650 650 600 Outside Vendor 900 600 300 Combination 800 650 500 Based on decision analysis under uncertainty, determine the best decision each of the model. Then compare all the model decision to make it overall conclusion.
- Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The table below shows the expected costs of the two options for three possible demand levels: States of Nature (demand) Alternatives Low Medium High Hire full−time $320 $480 $700 Hire part−time $0 $340 $800 Probabilities 0.20 0.55 0.25 Part 2 a) The alternative with the least expected cost is ▼ a. Hire full-time b. Hire part-time The expected price of this alternative is $_______ (enter your answer as a whole number). Part 4 b) The appropriate decision tree for Leah Johnson is presented in Figure____?JayZee Electronics wanted to expand its operations by considering of putting up another warehouse to store their electronic supplies from different suppliers. The table below shows the payoff for all alternatives available for JayZee Electronics in all 3 states of nature. The probabilities for every state of nature is also provided. Size of the Warehouse Good Market ($) Fair Market ($) Poor Market ($) Small 40,000 -10,000 -20,000 18,000 Medium 80,000 90,000 Large Very Large -40,000 -160,000 100,000 175,000 350,000 25,000 Probabilities 0.35 0.45 0.20 Using Decision Making under Uncertainty (Use Sheet 1 and rename it to Lastname_Uncertainty) (a) Develop a decision table for this decision. (b) What is the maximax decision? (c) What is the maximin decision? (d) What is the equally likely decision? (e) What is the criterion of realism decision? Use an a value of 0.8. (f) Develop an opportunity loss table. (g) What is the minimax regret decision? Using Decision Making under Risk (Use Sheet 1…Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The table below shows the expected costs of the two options for three possible demand levels: States of Nature (demand) Alternatives Low Medium High Hire full−time $320 $480 $700 Hire part−time $0 $350 $1,200 Probabilities 0.15 0.45 0.40 Part 2 a) The alternative with the least expected cost is ▼ a. Hire part-time b. Hire full-time The expected price of this alternative is $_______ (enter your answer as a whole number). Part 4 b) The appropriate decision tree for Leah Johnson is presented in Figure____?
- Wheels Distributors sells three types of tires to the commercial market. Type A. Type B and Type C. The anticipated payoffs are as follows for the three types of tires. Light Demand Moderate Demand Heavy Demand Probability 0.25 0.45 0.3 Tire Type A $325,000 $190,000 $170,000 B $300,000 $420,000 $400,000 C -$400,000 $240,000 $800,000 Construct a decision tree to help the management of Wheel Distributor make the appropriate decisions. This tree MUST be constructed in logical order with labels and net payoffs. Given the probabilities for the three types of tires and the expected monetary values, what decision should be made and what is that optimal expected value? What is the most should the firm be willing to pay to obtain further (perfect) information (EVPI) concerning the demand for the tires? 4. What decision should the firm…Kpogas produces chairs and tables. Using economic forecast for the next month, Kpogas’ marketing manager has judged that during that period, it will be possible to sell as many chairs or tables as the company can produce. Management must now recommend a production target for next month. That is, how many chairs and tables should be produced if Kpogas’ management wishes to maximize next month’s profit contribution? Making this decision requires a consideration of the following key factors: ● Kpogas’s unit contribution margin is GH¢ 5,000 on each chair that is sold and GH¢ 4,000 on each table that is sold. ● Each product is put through Kpogas’s machining operations in both department A and department B. For next month’s production, the two departments have 150 and 160 hours available time, respectively. Each chair produced uses 10 hours of machining in department A and 20 hours of machining in department B, whereas each table produced uses 15 hours of machining in department A and 10…The operations manager for a water taxi company wants to decide whether to purchase a small, medium, or large new boat for the company. The manager estimates that the annual profits (in thousands of dollars) will vary depending upon whether passenger demand is low, moderate, or high, as shown in the following table. ооо Boat none Small Medium Low Medium 49 38 Large Probability 0.3 Demand 21 60 82 53 0.3 High 68 90 118 If the company uses the expected value approach, which size boat will it decide to purchase? small medium large 0.4