IS a $35,000. He can also choose to Internal Engine 50% probability of a good market, what should he do? Why? x External Engine 5.24 Ritz Products's materials manager, Tej Dhakar, must Joint Design determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce. One million units are expected to be produced over the life cycle. If the product is made, start-up and production costs of the make decision total $1 million, with a probability of 4 that the product will be sat- is factory and a .6 probability that it will not. If the product is not satisfactory, the firm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether to spend another $1 million to redesign the semiconductor or to purchase. Likelihood of success the second time that the make decision is made is .9. If the second make decision also fails, the firm must purchase. Regardless of when the purchase takes place, Dhakar's best judgment of cost is that Ritz will pay $.50 for each purchased semiconductor plus $1 million in vendor development cost. a) Assuming that Ritz must have the semiconductor (stopping or doing without is not a viable option), what is the best decision? b) What criteria did you use to make this decision? c) What is the worst that can happen to Ritz as a result of this particular decision? What is the best that can happen?X What is the criterion? (No ing with costs 5.26 Us what happens Design B yield phosphorus to $250,000. Prep offs, and which 5.27 Mo improve prod KI, K2, and K is used, daily p Sox Engineering designs and constructs air condi- tioning and heating systems for hospitals and clinics. Currently, the company's staff is overloaded with design work. There is a major design project due in 8 weeks. The penalty for completing the design late is $14,000 per week, since any delay will cause the facility to open later than anticipated and cost the client signifi- cant revenue. If the company uses its inside engineers to complete the design, it will have to pay them overtime for all work. Sox has estimated that it will cost $12,000 per week (wages and over- head), including late weeks, to have company engineers complete the design. Sox is also considering having an outside engineering firm do the design A hid of $92,000 has heen received for the completed design. Yet another option for completing the design is to conduct a joint design by having a third engineering company taurant is for Non-defective wich. Defectiv goal is to choc typical restaur Cost $100,000. KI, there is a non-defective are non-defeet out of each 10 that 75 out o design K3, the are non-defect wiches are no 5.25 design that ach Problem 5.28