MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter A, Problem 12P
The Forsite Company is screening three ideas for new services. Resource constraints allow only one idea to be commercialized at the present time. The following estimates have been made for the five performance criteria that management believes to be most important:
- Calculate a total weighted score for each alternative. Use a preference matrix and assume equal weights for each performance criterion. Which alternative is best? Worst?
- Suppose that the expected
ROI is given twice the weight assigned to each of the remaining criteria. (The sum of weights should remain the same as in part [a].) Does this modification affect the ranking of the three potential services?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Construct a decision tree for this problem.
What is the recommended decision if the agency opinion is not used? What is the expected value?
What is the expected value of perfect information?
What is Hale’s optimal decision strategy assuming the agency’s information is used?
What is the expected value of the agency’s information?
Is the agency’s information worth the $5000 fee? What is the maximum that Hale should be willing to pay for the information?
What is the recommended decision?
XYZ work in a small electric business in Basrah city. He had a
sunshine controller device. He had to decide how to market his
idea, and in the short term, his options could be summarised as
selling the device locally, selling nationally through a website,
entering a partnership with an existing company or selling the
patent. His returns depended on demand, which he described
as high, medium, or low.
Using this simple model, he developed the matrix of potential
annual gains shown below:
Options
Demand
High
Medium
Low
Market locally
60
90
45
Use website
23
90
78
Partnership
12
25
89
Sell patent
30
30
30
Identify the decision taken under
the following approaches:
(1) Equal probability
(2) Regret
(3) Hurwicz criterion.
Note: The decision maker's degree of Pessimistic (a) is 0.3.
Rochor & Co has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totalled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. How many units would be produced in April?
Group of answer choices
20,000 units
20,800 units
5,600 units
4,800 units
Chapter A Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
Ch. A - Mary Williams, owner of Williams Products, is...Ch. A - Prob. 2PCh. A - An interactive television service that costs $10...Ch. A - A restaurant is considering adding fresh brook...Ch. A - Spartan Castings must implement a manufacturing...Ch. A - A news clipping service is considering...Ch. A - Prob. 7PCh. A - Techno Corporation is currently manufacturing an...Ch. A - The Tri-County Generation and Transmission...Ch. A - Prob. 10P
Ch. A - Tri-County G&T sells 150,000 MWh per year of...Ch. A - The Forsite Company is screening three ideas for...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 15PCh. A - Build-Rite Construction has received favorable...Ch. A - Prob. 17PCh. A - Prob. 18PCh. A - Prob. 19PCh. A - Prob. 20PCh. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 24P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- 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 abovearrow_forwardTRADEKINGS is a soft drink manufacturer in Zambia. Although it has a commandingshare of the soft drink market in Zambia, it is facing increasing competition from asoft drink known as Atia from Kenya and the Coca-Cola line of soft drinks.Required:Use a Product Portfolio (SWOT) Analysis to:A. Identify the opportunity OR threat to the company.B. Identify the company’s strength OR weakness of the company.C. Recommend an appropriate strategyarrow_forwardHerron Company is screening three new product ideas: A, B, and C. Resource constraints allow only one of them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10 (best), are shown in the following table. The Herron managers give equal weights to the performance criteria. Which is the best alternative, as indicated by the preference matrix method? Rating Performance Criterion Product A Product B Product C 1. Demand uncertainty and project risk 3 9 2 2. Similarity to present products 7 8 6 3. Expected return on investment (ROI) 10 4 8 4. Compatibility with current manufacturing process 4 7 6 5. Competitive advantage 4 6 5arrow_forward
- Pls help ASAP on botharrow_forwardLeah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The table on page 705 shows the expected costs of the two options for three possible demand levels. answer part a and part b. A. Using expected value, what should Ms. Johnson do? B. Draw an appropriate decision tree showing the payoffs and probabilities.arrow_forwardYou are required to generate an idea based on your opportunity recognition. From the idea, you need to prepare a feasibility analysis. Ice Cream Shop feasibility analysis should consist of the following information: Part 1: Product/Service Feasibility A.Product/service desirability B.Product/service demand Part 2: Industry/Target Market Feasibility A.Industry attractiveness B.Target market attractiveness Part 3: Organizational Feasibility A.Management prowess B.Resource sufficiency Part 4: Financial Feasibility A.Total start-up cash needed B.Financial performance of similar businesses C.Overall financial attractiveness of the proposed venturearrow_forward
- A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Three potential providers were scored on each of those factors using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Provider A Provider B Provider CClient reviews 2 6 10Financial condition 8 4 2IT capabilities 5 8 2Government stability 3 1 2In reference to the information provided discuss the relevance of the factor rating method in…arrow_forwardTRADEKINGS is a soft drink manufacturer in Zambia. Although it has a commanding share of the soft drink market in Zambia, it is facing increasing competition from a soft drink known as Atia from Kenya and the Coca-Cola line of soft drinks. Required: Use a Product Portfolio (SWOT) Analysis to: Identify the opportunity OR threat to the Identify the company’s strength OR weakness of the company Recommend an appropriate strategyarrow_forwardAnswer questions using EXCEL , include formulas Myrtle Air Express decided to offer direct service from Cleveland to Mrytle Beach. Management must decided between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Mrytle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars): Service Strong Weak Full Price $960 -$490 Discount $670 $320 a. What is the decision to be made, what is the chance event, and what is the consequence for this problem? How many decision alternatives are there? How many outcomes are there for the chance event? b. If nothing is known about the probabilities of the chance outcomes,…arrow_forward
- Please simply answer this easy question posted belowarrow_forwardHerron Company is screening three new product ideas: A, B, and C. Resource constraints allow only oneof them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10 (best),are shown in the following table. The Herron managers give equal weights to the performance criteria.Which is the best alternative, as indicated by the preference matrix method?arrow_forwardYou are required to generate an idea based on your opportunity recognition. From the idea, you need to prepare a feasibility analysis. Bakery feasibility analysis should consist of the following information: Part 1: Product/Service Feasibility A.Product/service desirability B.Product/service demand Part 2: Industry/Target Market Feasibility A.Industry attractiveness B.Target market attractiveness Part 3: Organizational Feasibility A.Management prowess B.Resource sufficiency Part 4: Financial Feasibility A.Total start-up cash needed B.Financial performance of similar businesses C.Overall financial attractiveness of the proposed venturearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License