What is utilization of pharma devs development facilities

Assignment Help Operation Management
Reference no: EM13223139

Problem: Queuing 

Pharma Dev develops and markets new technological products to be used in health care. The development of a new product operates as follows: when a new technology meets the requisite market potential, a new patent is filed. Patents are granted for a period of 12 years starting from the date of issue. Once the patent is filed, the new technology is developed at one of its three independent development centers, and is then launched to the market. Each product is developed at only one center, and each center can only develop a single patented technology at a time.

On average, Pharma Dev files a new patent every 5 months (with standard deviation of 5 months). The average development process lasts 12 months (with standard deviation of 24 months).

a) What is the utilization of Pharma Dev's development facilities?

b) How long does it take for the average technology from filing a patent to the start of the development process?

c) How many years of patent life remain on average when a product is launched to the market?

d) On average how many patented products are undergoing development or waiting to be developed?

Pharma Dev is considering leasing an additional development center to shorten the time to market of patented products. If this center is used in addition to the three centers, by how will the total time-to-market (waiting time plus development time) of a patented product change?

e) After a product is launched to the market, it generates gross margins of US$40 million per year of patent life. After the patent expires, the product generates no gross margins. By how much would leasing the new facility increase Pharma Dev's average total annual gross margins?

Reference no: EM13223139

Questions Cloud

How much profit does each firm earn : There are 75 firms in the perfectly competitive market for pencil erasers where the price is $50 per unit. Each firm faced costs of C(q) = 0.5q^3 - 5q^2 +65q How much does each firm produce and how much profit does each earn
Explain oxidize aluminum under standard state conditions : Answer the following questions: a) can Al3+(aq) oxidize tin (Sn) under standard-state conditions?; b) would it be OK to store an aqueous AlCl3 solution in a tin container?; c) can Sn2+(aq) oxidize aluminum (Al) under standard state conditions?; d)..
What are the profits of the firm at the optimal price : A firm with market power produces a chip at a marginal cost of $10 per unit and zero fixed costs. It faces a demand function given by P = 50 - Q. What are the profits of the firm at the optimal price and output combination
What were the causes of the weak safety record : What do you think about Walt Disney's decision not to purchase merchandise from Bangladesh? Is this and appropriate way of dealing with the problem?
What is utilization of pharma devs development facilities : What is the utilization of Pharma Dev's development facilities and how long does it take for the average technology from filing a patent to the start of the development process?
Individuals infected with hiv aids have physical : Topic is Individuals infected with HIV/AIDS have Physical needs
Based on statistical information calculate the profits : To simplify the computations, suppose the cost of production is zero for both products. You have estimated that there are three types of customers, I, II, and III, who buy the products of the firm. There are 2,000 customers of each type, and they ..
Defien the equilibrium constant kc : The equilibrium constant Kc equals 1.6 10-2 at 200°C. What are the moles of substances in the equilibrium mixture at 200°C if we start with 0.021 mol HBr in a 1.3-L vessel?
Devise a pricing strategy to maximize the firms profits : As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves

Reviews

Write a Review

 

Operation Management Questions & Answers

  Determine the largest standard deviation

The Good Chocolate Company makes a variety of chocolate candies, including a 12-ounce chocolate bar (340 grams). The output of the machine that fills the bar molds is approximately normal with a mean of 340 grams.

  What are of characteristics of a firm with a long cycle

What are some of the characteristics of a firm with a long cash cycle?

  What is Cirque product and business strategy

What is Cirque's product and business strategy? Comment specifically on how the product and strategy provide a competitive advantage.

  Illustrate what was the poka-yoke shin go created

The existing method involved assembles taking individual springs from a box containing several hundred also then placing two of them behind an ON button also two more behind an OFF button. Illustrate what was the poka-yoke shin go created.

  Locate the fire station using the center-of-gravity model

If it is anticipated that zone 2 (which houses senior residents) will be visited twice as frequently as any other zone, where would you locate the fire station using the center-of-gravity model?

  Which of the following is not a benefit derived

Which of the following is not a benefit derived from developing a service blueprint?

  Securities and exchange commission under the securities act

Will the offering need to be registered with the Securities and Exchange Commission (SEC) under the Securities Act of 1933? Explain.

  State the professional members of the courtroom workgroup

State the professional members of the courtroom workgroup and explain their roles.

  How characteristics model component improve job of employee

The job characteristics model has five components that enhance employee jobs-skill variety, task identity, task significance, autonomy, and feedback.

  What is the resulting lcl value for the line

From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, what is the resulting LCL value for the line?

  Which was the exact amount of the receipts

Our firm represents David Johanssen, a doctor specializing in internal medicine.

  Problem on consumer protection

Perfect Face Cream ran a commercial to showcase its new Wrinkle-Free Face Cream. The commercial showed an older woman with severe wrinkles followed by images of that same woman after applying the cream for one month.

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