Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $125 each. If the market is not good, he will sell only 300 at $90 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $70 each. In either case, production costs will be approximately S35.000 He can also choose to do nothing. If he believes there is a 50% probability of a good market, what should he do? Why?
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Chapter 5 Solutions
EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
- Can you show as algebraic modeling?arrow_forwardMadhu Ranadive, president of Davisville Toy Company, Inc., in Stratford, Ontario, has just reviewed the design of a new pull-toy locomotive for 1- to 3-year-olds. Madhu’s design and marketing staff are very enthusiastic about the market for the product and the potential of follow-on circus train cars. Madhu’s production people have worked out the manufacturing issues and produced a successful pilot run. However, the quality testing staff suggests that under certain conditions, a hook to attach cars to the locomotive and the crank for the bell can be broken off. This is an issue because children can choke on small parts. In the quality test, 1- to 3-year-olds were unable to break off these parts and there were no failures. But when the test simulated the force of an adult tossing the locomotive into a toy box or a 5-year-old throwing it on the floor, there were failures. The estimate is that one of the two parts can be broken off four times out of 100 000 throws. Neither the design nor…arrow_forwardWhat is the minimum viable product for selling handmade soaps to do drawing in sketching?arrow_forward
- Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is aprobability of .35 that the ATR Co. will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co. does not follow with a competitive product, Weiss's expected profit is $40,000 ; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $20,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000 ; if ATR does compete for this market, Weiss expects a loss of $120,000.Part 2a) Expected value for the option = $ b)Expected value for the build new plant option = c) The alternative that provides Weiss the…arrow_forwardA work team is looking at a current product in the LUML catalog --- the L555X fixture. The L555X was introduced about 2 years ago; is a pretty good seller; seems to meet customer needs (virtually no complaints and few returns); and should be in production for several more years. No major changes in capability are planned. However, LUML is interested in improving the profits from the product. Marketing opines that the L555X is fairly priced given the competition and L555X’s capabilities. One option to try to increase profits is to raise the price (revenue) while holding the production expenses constant. Marketing believes that the L555X has a typical demand curve; and an increase in price will lead to a decrease in sales volume and lower overall revenue. On January 13, the team analyzed the current design and identified 63 parts in the L555X. On January 27 and 28, the team met with the industrial engineering department. Together they were able to identify 108 interfaces in the L555X.…arrow_forwardA town is replacing a sidewalk that stretches in front of fivehomes. The sidewalk is 2,000 ft. ●●●●●●●●●●●●●●●●●●●●● Ana's property measures 300 ft. by 800 ft. The town plans to get $25,000 total of special assessments for the project. What is Ana's special assessment? $1.875 $10,000 $3,750 51 500arrow_forward
- Can you please make a report exactly like the image for any output needed in the proposed Car Sharing IS. Add a brief description of your report to explain what it shows.arrow_forwardPls help.arrow_forwardWhen a customer often revises the product's goals, how do you determine whether the software is of sufficient quality?arrow_forward
- A developer has requested your advice for the selling price per sg.m, of flats in an area of your choice. You should retrieve 20 asking prices for residential flats in your preferred area from agents' websites. Proceed with all necessary adjustments and estimate a value per sg.m, for a typical 2 bedroom flat that he is aiming to build. Additionally, retrieve asking rental prices for the same area and proceed with the necessary adjustments in order to estimate the ARY. Present your analysis and the way of thinking in 500 words and also support your opinion with an excel table showing your adjustments.arrow_forwardHome-Style Cookies has decided to implement an employee suggestion to open a retail cookie shop in the front area of their manufacturing building in Hudson, New York. The employee offices currently occupying that space can easily be moved to the production area and there is ample parking for customers. Even though the plant is located in a small town, it is easily accessible and visible from the scenic highway which leads to Manhattan, New York. Through research and initial consumer testing, the retail shop will offer individual cookies for sale, pre-packaged dozen cookies (one kind of cookie), and gift cookie assortments in logoed tins in two sizes, 2-dozen and 3-dozen. The Home-Style executive team has hired you as a consultant to create the initial plan for the new retail shop. They have given you the first three months’ forecast, represented in the following table (Retail Shop Forecast). Embed your service blueprint in your document or submit it separately. Month Chocolate…arrow_forwardIshikawa diagram is a method for stating and identifying the problem. It can be also known as: i. Fishbone diagram ii. Fishwhale diagram iii. Herringbone diagram iv. Fishikawa diagram А. i and ii В. i, ii and iii C. i, iii and iv D. All abovearrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,