I need decision tree for Case II 1Construction strategy for Sunray Co.Case 1.Sunray Co. plans to open a new plant in the East Midlands. The company can open a full-size plant now ora small-size plant that can be expanded 2 years later if warranted by high demand. The time horizon for thedecision problem is 10 years. Sunray Co. estimates that the probabilities for high and low demands over thenext 10 years are .75 and .25, respectively. The cost of immediate construction is £5 million for a large plantand £1 million for a small plant. The expansion cost of a small plant 2 years from now is £4.2 million. Theincome from the operation over the next 10 years is given Table 1.Table 1: Data for Sunray Co.: case 1Annual income estimates (in £1,000)High demandAlternativeLow demandFull-size plant nowSmall-size plant nowExpanded plant in 2 years1000300250200900200Your team has been formed to develop a construction strategy for Sunray Co. over the next 10 years, given thatafter 2 years the company has the option to expand or not expand the small plant.Case 2.Now develop a construction strategy for Sunray Co. assuming that the demand can be high, medium, and lowwith probabilities .7, .2, and .1 respectively. Expansion of a small plant will occur only if demand in the first 2years is high. Table 2 provides estimates of the annual income.Ignore the time value for money.Table 2: Data for Sunray Co.: case 2Annual income estimates (in £1,000)High demand1000AlternativeFull-size plant nowSmall-size plant nowExpanded plant in 2 yearsMedium demandLow demand500300400280150900600200

A decision tree is the diagrammatic representation of the various alternatives available for a…

Now develop a construction strategy for Sunray Co. assuming that the demand can be high, medium, and low with probabilities .7, .2, and .1 respectively. Expansion of a small plant will occur only if demand in the first 2 years is high. Table 2 provides estimates of the annual income. Ignore the time value for money. Table 2: Data for Sunray Co.: case 2 Annual income estimates (in £1,000) Alternative High demand Medium demand Low demand

Now develop a construction strategy for Sunray Co. assuming that the demand can be high, medium, and low with probabilities .7, .2, and .1 respectively. Expansion of a small plant will occur only if demand in the first 2 years is high. Table 2 provides estimates of the annual income. Ignore the time value for money. Table 2: Data for Sunray Co.: case 2 Annual income estimates (in £1,000) Alternative High demand Medium demand Low demand

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

2
Activity Immediate Predecessors Normal Time (NT) (weeks) Normal Cost (NC) ($) Crash Time (CT) (weeks) Crash Cost (NC) ($) A --- 4 $200 2 $650 B A 6 $500 4 $900 C A 5 $600 3 $1,200 D A 6 $1000 5 $1,400 E B 6 $1,500 5 $2,000 F C, D 5 $200 4 $400 G E, F 6 $600 4 $1200 Determine the minimum cost-schedule for this project to be completed in 18 weeks.?
student training program model topic : pharmacy Develop a program model for training and development for new line and middle managers in healthcare organizations. The program model should be simple and include a framework for the following elements : 1. skills assessment , developmental objectives and training 2. coaching and mentoring ( who and how ? ) 3. assessment against development objectives
Activity Immediate Predecessors Optimistic Time (a) Most Likely Time (m) Pessimistic Time (b) Variance A - 6 8 9 .25 B - 9 12 15 1.00 C A, B 4 6 11 1.36 D B 3 4.5 6 .25 E A 1 2 3 .11 F C 1 3 5 .44 G E,F 5 6 10 .69 H D,F 2 3 4 .11 I G,H 1 1 1 .00 J I 2 3 7 .69 (e) What are the expected time and the variance of the project? (f) What is the probability that the project is completed in 32 or fewer weeks? (g) What date should be set such that there is a 94% chance of completion within that time?
1. Explain human resources management in drink powder factory. 2. Explain labor specialization in drink powder factory with diagram. 3. Explain job expansion in drink powder factory with diagram.
QUESTION 1 In a project organizational structure, of an enterprise, the project manger reports to: A functional manager VP CEO Both functional manager CEO
Please help me with my assignment.
10. CASE SYNOPSIS As 2019 ended, the founder and chief executive officer (CEO) of this Cosmetic Company had overseen phenomenal growth during the firm's five years of operation. However, the company was about to encounter a series of issues as a result of the global COVID-19 pandemic that resulted in lockdowns, stay-at-home orders, and closures of non-essential businesses around the world. This company, likemany other companies, suffered a severe decline in revenue. How could this company overcome the uncertainty and challenges that accompanied the pandemic? Construct Strategically sound decision during a crisis that involves severe resource constraints.
Site 1 example of decision making in a student perception and give an illustration.
Q1(c) In a resource-constraint scheduling, the project manager is required to apply a resource smoothing technique. Give 3 goals of resource smoothing.
Assignment Case 1: In the past, the decision criteria for mergers and acquisitions were typically based on considerations such as the strategic fit of the merged organizations, financial criteria, and operational criteria. Mergers and acquisitions were often conducted without much regard for the human resource issues that would be faced when the organizations were joined. As a result, several undesirable effects on the organizations’ human resources commonly occurred. Nonetheless, competitive conditions favor mergers and acquisitions and they remain a frequent occurrence. Examples of mergers among some of the largest companies include the following: Honeywell and Allied Signal, British Petroleum and Amoco, Exxon and Mobil, Lockheed and Martin, Boeing and McDonnell Douglas, SBC and Pacific Telesis, America Online and Time Warner, Burlington Northern and Santa Fe, Union Pacific and Southern Pacific, Daimler-Benz and Chrysler, Ford and Volvo, and Bank of America and Nations Bank. Layoffs…
FEW POINTS ON WORK BREAKDOWN STRUCTURE(WBS) OF HAIR SALOON 1) CONTROL 1.1) Projrct Management 1.2) Project Status Meetings 1.3) Risk Management 1.4) Update Project Management Plan