John is looking into buying a used car

Assignment Help Operation Management
Reference no: EM13153894

1. John is looking into buying a used car. John has two options: 
- Honda Civic at 15000$ which gives a mileage of 26 miles/Gallon. - Toyota Corolla at 20000$ which gives a mileage of 33 miles/Gallon.
John is not sure about both the mileage and fuel price. The uncertainty of mileage is that of Table and Fuel price uncertainty follows beta distribution with pessimistic price being 3.92$/Gallon, most likely being 3.55$/Gallon and optimistic price being 3.01$/Gallon. 
1. Determine the low cost car for John and draw a graph illustrating a crossover or indifference or break even point?
Table 
Mileage and their probabilities
Probability John would be travelling
0.1 50000 miles
0.3 75000 miles
0.35 100000 miles
0.25 200000 miles

Question 2. 
The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 20% of item price. Price is established by the Table 3 quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?

Quantity discount schedule
Quantity 1 to 49 50 to 249 250 and up
Price $5.00 per unit $4.50 per unit $4.10 per unit

Reference no: EM13153894

Review the six leadership styles

Review the six leadership styles. What type of leader do you aspire to become? Explain why you believe your choice of leadership style would be helpful in creating an effectiv

Project plan that has received approval from all parties

Mass production automobile manufacturing does not qualify as a project because: What do we call the final form of the project plan that has received approval from all parties

Management trainee at the continental packaging company

As a management trainee at the Continental Packaging Company, you are currently assigned to the office of the operations manager, Jim Hartman. Your job is to help him and to l

What are the steps in rational decision making

Why is it possible to recommend less than a total integrated approach to security? What laws exist that establishes what level of use of force can the private security industr

Identify all the paths on the network diagram

Identify all the paths on the network diagram and note how long they are, using Figure 4-21 (page 152) as a guide for how to represent each path. What is the critical path for

What are the components of noes transfer training model

What are the components of Noe's transfer training model? As a supervisor, why is important to be fully knowledgeable of the percise limits of your authority? (answer with cit

Describe a contemporary bargain unit as defined by nation

Define also describe a contemporary bargain unit as defined by the National Labour Relations Act. Explain how, if at all, does it differ from a bargaining unit in 1935.

What is the total inventory cost

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. What is the approximate economic order quantity? What is the tot

Reviews

Write a Review

 
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