Southland Corporation's decision to produce a new line of recreational products resulted in theneed to construct either a small plant or large plant. The best selection of plant size depends onhow the marketplace reacts to the new product line. To conduct an analysis, marketingmanagement has decided to review the possible long-run demand as Low, Medium or High. Thefollowing table shows the projected profit in millions of dollars:Plant sizeAlternatives Low Medium HighSmall15020020050500LargeProbability2000.20.50.3What is the decision to be made based on:a. Maximax Criterionb. Maximin Criterionc. Minimax Regret Criteriond. Criterion of Realism with alphae. Criterion of Insufficient Reasonf. Decision Tree Analysis= 0.80

Note: - Since we can answer only up to three subparts we will answer the first three subparts here.…

Answered: Southland Corporation's decision to…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew the lease for another 10 years or to relocate near the site of a proposed motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park’s two alternatives under each state of nature as shown on the following page. What course of action would you recommend using?a. Maximaxb. Maximinc. Laplaced. Minimax regretOptionsMotelApprovedMotelRejectedRenew $ 500,000 $4,000,000Relocate 5,000,000 100,000
Muñoz Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long-run demand as low, medium, or high. The following payoff table shows the projected profit in millions of dollars. Long-Run Demand Plant Size Low Medium High Small 250 300 300 Large 150 300 600 (a) What is the decision to be made, and what is the chance event for Muñoz problem? The decision is to choose the best plant size . There are 2 alternatives. The chance event is the market demand for the new product line There are 3 possible outcomes. (b) Construct an influence diagram. (Submit a file with a maximum size of 1 MB.) Choose File No file chosen This answer has not been graded yet. (c) Construct a decision tree. (Submit a file with a maximum size of 1 MB.)…
Determine Fall's seasonal factor from the information below. Seasons Past Sales Spring 350 Summer 200 Fall 600 Winter 450 Total 1,600 Group of answer choices a. 0.8 b. 1.8 c. 2.5 d. 1.5 e. 2.0
1
Please please answer all subparts. I will really upvote. I know it's not according to your guidelines.
Hahn Manufacturing purchases a key component of one ofits products from a local supplier. The current purchase priceis $1,500 per unit. Efforts to standardize parts succeededto the point that this same component can now be used infive different products. Annual component usage should in-crease from 150 to 750 units. Management wonders whetherit is time to make the component in-house rather than tocontinue buying it from the supplier. Fixed costs would in-crease by about $40,000 per year for the new equipment andtooling needed. The cost of raw materials and variable over-head would be about $1,100 per unit, and labor costs wouldbe $300 per unit produced.a. Should Hahn make rather than buy?b. What is the break-even quantity?c. What other considerations might be important?
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year Forecast Demand 1 60 2 79 3 81 4 5 84 84 Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? b. Given the five-year forecast, how much extra capacity is needed each year? c. Does the firm need to buy more machines? If so, how many? When?
A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000. Operating income is negative and my recommendation is be closing Operating income is positive and my recommendation is not closing My recommendation is closing due to the close-down and start-up costs My recommendation is not closing despite the loss None of the above
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $160,000 and a variable cost of $5 per unit, and the other would have an annual fixed costof $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best.

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