Explain optimum batch production quantity, Operation Management

Assignment Help:

A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be supplied. Each good part sold will yield $30,000. However, if fewer than 4 good parts are produced, none will be purchased. The probability of an individual part being acceptable to the customer is .80. Determine the optimum batch production quantity given that the job shop has agreed to supply the formed parts. Is the situation a profitable one for the job shop? If not, how must the selling price be changed for the expected profit to be positive?


Related Discussions:- Explain optimum batch production quantity

International Business Management, Describe the sentence "The world economy...

Describe the sentence "The world economy is globalizing at an accelerating pace"

Describe why operational efficiency is so important, Explain why operationa...

Explain why operational efficiency is so important to Net Income, Return on Capital and Income.

Impact of activity of listening, How is the activity of listening impacted ...

How is the activity of listening impacted by the particular situation?

The study of global business is relevant to work company, Discuss the follo...

Discuss the following theory: The study of global business is relevant if you work or plan to work in a large multinational company, but it has little or no significance for indivi

Describe the lewin''s change process, Question 1: Change is often resis...

Question 1: Change is often resisted because of the uncertainty and ambiguity it creates, the concern that it might not be in the organisation's best interest. (i) Discuss

Illustrate the strategic positioning tools, Illustrate the strategic positi...

Illustrate the strategic positioning tools? Strategic positioning tools according to Reck and Long: • Passive (as clerical and transaction based) purchasing functions only o

Define management information system and its scope, Normal 0 fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Ethical organizations are founded through ethical leadership, Discuss how e...

Discuss how ethical organizations are created through ethical leadership and organizational structures and systems.

Outline one attribute or capacity of servant leadership, 1 Address the foll...

1 Address the following questions and concepts: 1) Describe one attribute or capacity of servant leadership and explain how and where you might apply this pri

Write Your Message!

Captcha
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