1. An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Solve using the five criteria and choose the best alternative. a= 0.4, 0.2, 0.2, 0.2 respectively. Determine the best option using the following decision criteria: (a) Maximax (b) Maximin (c) Minimax Regret

1. An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Solve using the five criteria and choose the best alternative. a= 0.4, 0.2, 0.2, 0.2 respectively. Determine the best option using the following decision criteria: (a) Maximax (b) Maximin (c) Minimax Regret

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Briefly explain Documenting the Current Method?
I want full answer with all solution steps
CASE OUTSOURCING OF HOSPITAL SERVICES Due to financial pressures that many hospitals face, the Deacon- ess Clinic in Billings, Montana, decided to outsource a number of services, although in somewhat different ways. First, the hospital outsourced its cafeteria food service. Although the food service employees were hired by the outside firm, they still felt a sense of ownership of their jobs, and still felt connected to the hospital because of the family atmosphere in the kitchen and the cafeteria. When the hospital tried the same thing with housekeeping, employee turnover became a problem. An investigation revealed that because the housekeeping employees were more isolated in their work, they lost what little feeling of being connected to the hospital they had. The problem was solved by hiring the employees back but using the outsource company to manage housekeeping. The hospital also decided to outsource its laundry service. This time, the hospital approached a rival hospital about…
choose 1 disruptive technology and answer question below a)Pain point(s) of selected product or service b)Current product/service c)technology that may be used to solvepain point(s) in 1
Identify four feasibility types. Briefly explain each type and formulate two questions that canbe asked for each type of feasibility.
Strengths of 4-star and 5-star hotels Multilingual staff with a high staff to visitor proportion. A 24-hour front counter, valet stopping, steward benefits, a custodian welcoming each visitor at the entry, and separate attendant staff accessible somewhere around 2/3 of the day. Separate lifts for visitors and hotel staff. That equivalent degree of solace applies to room conveniences, too. AAA jewel appraisals are separated by the level of the lodging outperforming client assumptions. Four-precious stone inns are refined, upscale, and up-to-date all through the whole lodging, including the visitor rooms. Five-precious stone inns give extreme extravagance and refined facilities. rooms in four-star lodgings including updated conveniences, for example, huge sovereign or lord beds, additional seating, pad top beddings, smaller than normal bars, and name-brand shower items. Five-star lodgings exceed everyone's expectations with curiously large marble or rock restrooms, twofold vanities,…
Below are instructions for Wilson hotel Michael Wilson entered into a new business, hotel ownership, by buying a small 24 room hotel and café. The hotel is located in a remote area of Minnesota that is popular for tourists. Michael has hired you for advice. Michael hired a young couple to run the hotel and café on a daily basis and plans to pay them a monthly salary. They will live for free in a small apartment adjacent to the office. The couple will be responsible for hiring and supervising five part-time personnel who will help with cleaning the rooms, cooking, waiting on customers in the café. The couple will maintain records of rooms rented, meals served, and payments received. They will also make weekly deposits. Mike is concerned about his lack of control over the records and operations. Mike lives 5 hours away and will only be able to make periodic visits. Mike trusts the couple but wonders if it makes sense to place so much trust in employees. Mike needs your help to identify…
Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $75,000 for proposal B. In addition to the proposed fixed costs from the two ve management at Cortez anticipates that they will have to spend $8,000 for installations be completed. The variable cost is $12.00 for A and $11.00 for B. The revenue generated by each unit is $24.00. a) The break-even point in dollars for the proposal by Vendor A = $ (round your response to the nearest whole number). b) The break-even point in dollars for the proposal by Vendor B = $| (round your response to the nearest whole number).
Explain the importance of conducting a business impact analysis (BIA) in the context of continuity planning.
1) Specify Louis Vuitton main activities – while highlighting their nature from an operation management perspective for forecasting scheduling 2) Suggest a capacity enhancement factor (how can Louis Vuitton’s capacity be enhanced?
Understand the importance of operation management in organization. Define errors in forecast to make conclusion and decision.