Metal works considering the of a new line of products

Assignment Help Operation Management
Reference no: EM1384483

An engineer at the Metal works is considering the introduction of a new line of products. In order to produce the new line, the company needs either a major or minor renovation of the current platn. The market for the new line of products could be either favorable or unfavorable, each with equal chance of occurrence. The company has the option of not developing the new product line at all. With major renovations, the company's payoff from a favorable market is $100,000, from an unfavorable market $-90,000. Minor renovation and favorable market has a payoff of $40,000 and an unfaborable market of $-20,000. Obviously, not developing the new product has a $0 payoff. Prior to making a final decision the company has contracted with a market researching group to conduct a market analysis to determine for certain if the market will be favorable or unfavorable. How much is the maximum amount the company should be willing to pay for this accurate information? (indicate to the nearest whole number)

Reference no: EM1384483

Questions Cloud

Significant questions software installed by cable personnel : Interesting post on the computer discussion site (Slashdot) raises some significant questions about software installed by cable personnel.
How much will his long term average satisfaction be : how much will his long term average satisfaction be? For Steve, what amount (in nearest whole $) would give him the same satifaction equal to the previous question?
Single polypeptide separated by sds-page : Four proteins, each having a single polypeptide, are separated by SDS-PAGE: human cytochrome c , human serum albumin, bovine myoglobin.
Describe a job which is usually done by an individual : describe a job which is usually done by an individual, which you believe would be made better by having people work in teams, elucidate why.
Metal works considering the of a new line of products : An engineer at the Metal works is considering the introduction of a new line of products. In order to produce the new line, the company needs either a major or minor renovation of the current platn
Use of label theory : In brief describe learning theory. Critically discuss briefly the use of label theory to explain juvenile delinquency. What are the racial implications of the theory?
When would a one-sided presentation be better : Illustrate what are some other scenarios when a two-sided presentation is beneficial compared with a one-sided one? When would a one-sided presentation be better.
Discuss your company primary and second target : Discuss your company's (general electric) primary and secondary target. Describe each target group, demographic profile and provide data on the size of the market.
Reminding them of key components of a company policy : Write a procedural email to employees reminding them of key components of a company policy on acceptable use of email and text messaging. The policy should address security issues

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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