Improve productivity-quality-expected profit level of design

Assignment Help Operation Management

Reference no: EM13819421

McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.40 to produce. Non-defective sandwiches sell, on average, for $2.75 per sandwich. Defective sandwiches cannot be sold and are scrapped. The goal is to choose a design that maximizs the expected profit as a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $100,000, $130,000, $160,000 respectively. Under design K1 there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 change that 70 out of each 100 sandwiches are non-defective. Under K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of 100 sandwiches are non-defective. Under design K3, there is a .90 chance that 95 out of each 100 sandwiches are non-defective and a .10 chance that 80 out of each 100 sandwiches are non-defective. The expected profit level of design K1 is $_________ (Enter your response as a real number rounded to two decimal places.)

Reference no: EM13819421

Questions Cloud

Budgeting process-capital investment decisions : Use the Internet to research information related to the budgeting processes within the various types of health care organizations. Next, determine the most-effective budgeting approach for a hospital, indicating how this approach can lead to effe..

Romantic attractions between two people : "Opposites attract" is a long-standing cliché used to describe seemingly unlikely romantic attractions between two people; however, it just does not seem to apply to the work environment likely because far more people are involved in professional ..

Write a cultural evaluation in which you identify the ways : Write a 350- to 500-word cultural evaluation in which you identify the ways that arguments or a presentation of the arguments would need to be changed as the result of cultural differences in the selected country.

Assignment uses a rubric : Perform a health history on an older adult. Students who do not work in an acute setting may "practice" these skills with a patient, community member, neighbor, friend, colleague, or loved one. (If an older individual is not available, you may choose..

Improve productivity-quality-expected profit level of design : McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant..

Description of inventory system : Write a summary which includes: 250- to 350-word description of each inventory system.

What benefit would retailers gain : What benefit would retailers gain from using category management to guide their decisions with merchandise planning

Write a paper about the legacy of the crusades : Write a paper about The legacy of the Crusades, whether positive or negative, has been contested among Christians and non-Christians alike.

Health history and screening of an adolescen : Select an adolescent or young adult client on whom to perform a health screening and history. Students who do not work in an acute setting may "practice" these skills with a patient, community member, neighbor, friend, colleague, or loved one. Comple..

User Account

All Pages