ABC Corporation is considering three options for managing its data processing operation:continuing with its own staff, hiring an outside vendor to do the management (referred to asoutsourcing), or using a combination of its own staff and an outside vendor. The profit of theoperations depends on future demand. The annual profit of each option (in thousands ofdollars) and for each state of demand is summarized in the following table:Staffing OptionsOwn StaffOutside VendorCombinationHigh650900800DemandMedium650600650Low6003004001. If the manager of ABC Corporation is optimistic, which staffing option will he/shechoose?2. If the manager of ABC Corporation is conservative, which staffing option will he/shechoose?3. Suppose the probabilities of high, medium, and low demand are 40%, 10% and 50%,respectively. Using the expected value approach, which staffing option should themanager choose?4. What is the expected value of perfect information?

Given information is,ABC Corporation is considering three staffing options for managing its data…

Answered: ABC Corporation is considering three…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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interpret Company A and Company B's results below in terms of the factors that impact Cost Volume Profit Analysis (CVP). Why does Company B have the greater degree of operating leverage? As a manager, why is operating leverage an important concept? Company A Company B Sales (10,000 units times $26) $260,000 Sales (10,000 units times $32) $320,000 Less Variable expenses (10,000 units $16) 160,000 Less Variable expenses (10,000 units times $20) 200,000 Contribution margin (a) 100,000 Contribution margin (a) 120,000 Less Fixed expenses 80,000 Less Fixed expenses 100,000 Net operating income (b) 20,000 Net operating income (b) 20,000 Degree of operating leverage (a divided by b) 5.0 Degree of operating leverage (a divided by b) 6.0
Describe the results of your two graphs as they compare to the movement of demand. Be specific. Choosing between the three-period and the five-period forecasts, which length of averaging would you use as a purchasing manager of Greenfield’s Tannery? Be sure to factor in the cumulative forecast errors in your answer. Also, make sure you include some rationale about why you are picking the method you do for this particular business. So for example, does picking one method over the other have any impact on how much inventory they will have on hand to meet customer demand? What happens when the demand drops? Which method better supports that?
need comprehensive and correct answers.This question is about optimization.
XYZ Manufaturing company has hired a new VP (D.A.King) for managing capacity investment decisions. Mr. King reviews the situation after he comes on board and decides that he can invest in Batch manufacturing, Custom manufacturing or Group technology. Mr. King will not be able to forecast demand accurately till after the technology choices are made. Demand will be classified into four scenarios: poor, fair, good and excellent. The table below indicates the payoffs for each combination of technology choice and demand scenario. POOR FAIR GOOD EXCELLENT PROBABILITY 0.1 0.4 0.3 0.2 Batch - $200,000 $1,000,000 $1,200,000 $1,300,000 Custom $100,000 $300,000 $700,000 $800,000 Group Technology - $1,000,000 -$500,000 $500,000 $2,000,000 1.What is the expected monetary value of choosing the Group Technology option? 2.What is the expected monetary value of choosing the Batchoption? 3What is the BEST decision based on…
A manufacturing company makes two types of water skis, a trick ski and a slalom ski. The relevant manufacturing data are given in the table. Labor-Hours per Ski Maximum Labor-Hours Available per Day Department Fabricating Finishing Answer parts (A), (B), and (C) below. Trick Ski 6 1 Slalom Ski 4 1 (A) If the profit on a trick ski is $30 and the profit on a slalom ski is $40, how many of each type of ski should be manufactured each day to realize a maximum profit? What is the maximum profit? The maximum profit is $ The maximum occurs when trick skis and 216 42 slalom skis are produced.
A local firm is planning its workforce and production levels over the next year. The firm makes a variety of microprocessors and uses sales dollars as its aggregate production unit. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollar sales for the next year by month is as follows: Month Production Days Predicted Demand(in $10,000) Month Production Days Predicted Demand(in $10,000) January 20 595 July 20 410 February 19 225 August 21 130 March 22 565 September 19 405 April 18 205 October 23 315 May 21 230 November 21 355 June 22 120 December 18 350 Inventory holding costs are based on a 25% annual interest charge. It is anticipated that there will be 675 workers on the payroll at the end of the current year and inventories will amount to $120,000. The firm would like to have at least $100,000 of inventory at the end of December…
G.97.
*NEED HELP WITH 1, 2, and 3*DYNAMIC INVENTORY MODELSPLEASE WALK THROUGH WITH EXCEL IF POSSIBLE, PLEASE!Mohawk Industries builds transmissions for a large automobile manufacturer. One of its transmissionassemblies requires part #HD234, purchased from a supplier within the same industrial park. Because ofthe close proximity of its supplier, the lead me for part #HD234 is negligible.The demand for part #HD234 varies according to the orders received from the automobile manufacturer.The requirements schedule for the next 10 periods is shown below: Period 1 2 3 4 5 6 7 8 9 10 Total Demand 115 50 175 95 150 225 75 70 40 20 1,015 This requirements schedule is considered fairly typical. Furthermore, the cost of placing an order with anearby supplier is $85.00, the purchase cost is $65.00, and the holding cost fracon is 0.01 per period.Mohawk is in the process of assessing different lot-sizing policies. It is interested in several that havebeen suggested.Before it can decide among them,…

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