Estimated costs for various capacity alternatives

Assignment Help Operation Management
Reference no: EM131271133

A manager has compiled estimated costs for various capacity alternatives but is reluctant to assign probabilities to the states of nature. Assuming the values in the payoff table are estimated costs and the goal is to minimize expected costs. STATE OF NATURE #1 #2 A $ 20* 145 Alternative B 120 80 C 100 52 *Cost in $ thousands. b. Is there any alternative that would never be appropriate in terms of minimize expected cost? Alternative A Alternative B Alternative C None c. For what range of P (2) would alternative A be the best choice if the goal is to minimize expected cost? Choose Alternative A for P(#2) . d. For what range of P (1) would alternative A be the best choice if the goal is to minimize expected cost? Choose Alternative A for P(#1) .

Reference no: EM131271133

Questions Cloud

The difference between banner advertising and pop ups : Discuss in particular the difference between banner advertising and pop-ups and how these work in relation to clickthrough and web pages using examples to illustrate.
Paper based on a theory or level of analysis : You will construct a paper based on a theory or level of analysis that you believe most completely represents the cause for conflict and war between nation-states.
Measured in the number of units : A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It takes 12 minutes to bake the bread. How large of an oven is required so that the company is able to produce 4200 units of..
Supply and demand to address a predetermined goal : Use the principles of supply and demand to address a predetermined goal (set by the student). Be clear on what the current market indicates and why and what your future goal is. We will probably revisit some of your choices in future modules.
Estimated costs for various capacity alternatives : A manager has compiled estimated costs for various capacity alternatives but is reluctant to assign probabilities to the states of nature. Assuming the values in the payoff table are estimated costs and the goal is to minimize expected costs.
About creating plan and what will be included in plan : You are a hospital administrator and want your hospital to stay competitive by providing high-quality healthcare services. You know that some of the hospital’s programs are excellent and some are not-so-much. So you want to develop a corporate progra..
Best described as sharing costs-sharing risks : The new world of employee benefits is best described as “sharing costs, sharing risks.” Discuss the impact of that philosophy on the broad areas of health care and pensions.
Chance of a recession economy next year : Fun Toy Corporation estimates that there is 25% chance of a recession economy next year, a 50% chance of a normal economy next year, and a 25% chance of a boom economy next year.
Ideal competitive environment from profit-making standpoint : Both Honda and Sony took many decades to build their core competencies, and these competencies are based primarily by decisions made in the past. Which industry can be LEAST described as a slow cycle market? An ideal competitive environment from a pr..

Reviews

Write a Review

 

Operation Management Questions & Answers

  What is the estimate of the mean profit

what is the estimate of the mean profit associated with the production quantity of 60,000 dolls?

  Prepare a flowchart on real-life service organisation

Choose a real-life service organisation that you are familiar with. You need to inform your lecturer of your choice - Prepare a flowchart of the back-stage as well as the front-stage operations of this business.

  Describe the similarities in the quality improvement

Describe the similarities in the quality improvement philosophies of Deming, Juran, and Crosby. Include a title page and 3-5 references. Only one reference may be from the internet (not Wikipedia). The other references must be from the Grantham ..

  Determine the actions required to reform immigration

You have been tasked by the federal government to lead a committee to determine the actions required to reform immigration. You have to present your findings to Congress on Friday. They will expect you to answer the following questions: Who will be o..

  What is the weekly total material handling cost of layout

Gordon Miller job shop has 4 work areas A, B, C, D. Distance in feet between centers of the work areas are: It costs Gordon $1.00 to move 1 work piece 1 foot. What is the weekly total material handling cost of the layout?

  Performance measures contribute to performance deficiencies

Explain how poorly-designed performance measures can contribute to performance deficiencies.  Can well-designed measures contribute to improving performance?  Explain. What are the major disadvantages of the three major forms of performance-based pay..

  Imagine you are the director of finance for a large publicly

Imagine you are the Director of Finance for a large publicly traded company. Of all the material, analyze the single most important element that a Director of Finance must practice diligently

  Encourage ethical behavior in the firm

You have been appointed the chief ethics officer for a fortune 500 company. while the company has not endured any significant public scandals, they also have done nothing to encourage ethical behavior in the firm. you are the first chief ethics offic..

  Collaboration in a business environment is a best practice

Collaboration in a business environment is a best practice that leverages the collective knowledge of the team assembled. Peer evaluation and support, provided in the spirit of continuous improvement and organizational success, result in higher qu..

  Forecasting problem-assume previous period forecast

Forecasting Problem Assume a previous period forecast including trend of 100 units, a previous trend estimate of 15 units, an alpha of .20 and a delta of .25. If actual demand turned out to be 110 units rather than the forecast of a 100 units for per..

  What is joe hindrichs strategy for achieving these goals

What is joe Hindrichs' strategy for achieving these goals? Does he introduced the right action steps? Are these new action steps effective? Why or why not? What are the underlining characteristics of Joe Hindrichs' action steps? Does anything appear ..

  Examples of control activities whole foods market

Describe three examples of control activities Whole Foods Market, Inc. could use to minimize these risks. Summarize the company's financial performance for 2010. Do you think they satisfied stockholder expectations. Why or why not? Explain three bu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd