Explain what is your best choice using emv criterion, Operation Management

Assignment Help:

Dalton and Carla run a small bicycle shop called "D n C"Bicycles. They must order bicycles for the coming season. Orders for the bicycle must be placed in quantities of twenty(20).The cost per bicycle is $70 if they order 20,$67 if they order 40,$65 if they order 60 and $64 if they order 80.The bicycles will be sold for $100 each. Any bicycles left over at the end of the season can be sold (for certain)at $42 each. If Dalton and Carla run out of bicycles during the season, then they will suffer a loss of "goodwill" among their customers. They estimate this goodwill loss to be $8 per customer who was unable to buy a bicycle. Dalton and Clara estimate that the demand for bicycles this season will be 10, 30, 50, or 70 bicycles. a. Construct a decision table b. Determine the maximax and the maximum decisions c. Construct opportunity loss table and determine the minimax regret decision d. If the probabilities of the demand will be 10, 30, 50 or 70 bicycles are 0.2,0.4,0.3, and 0.1 respectively, what is your best choice using EMV criterion.


Related Discussions:- Explain what is your best choice using emv criterion

Explain skilled nursing care, A nursing home contracts with an HMO for skil...

A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 member

Role or forecasting in capacity planning, Role or Forecasting in capacity P...

Role or Forecasting in capacity Planning The marketing department plays a major role in providing demand forecasts based on which both long term as well as short term capacity p

Explain does a valid contract exist between two persons, You are currently ...

You are currently an intern working for the largest law firm in Alabama. Your mentor and senior attorney introduces you to a new client, Dick Jefferson, the owner of House Doctor,

Explain negotiated union contract allows workers, A recently negotiated uni...

A recently negotiated union contract allows workers in a shipping department 21 minutes for rest, 12 minutes for personal time, and 15 minutes for delays for each four hours worked

Define the amount of fabric she needs is to forecast, The percentage of val...

The percentage of value of shipments that come from materials for the average manufacturer is: a. greater than or equal to 40 and less than or equal to 49 percent. b. greater than

Key issues when implementing an erp system, 1. Discuss how you interpret th...

1. Discuss how you interpret the statement 'ERP is the 'meat and potatoes' of the organisation'.  2. What are the key issues when implementing an ERP system?  3. How will tra

Differences among transnationals and global corporations, 1) Discuss the di...

1) Discuss the differences between transnationals and global corporations. 2) Compare political risk in the US to that of Egypt. Is there more in one country and what is the imp

Explain develop a time-phased structure, Heather Adams, production manager ...

Heather Adams, production manager for a Colorado exercise equipment, needs to schedule an order for 50 Ultimate Steppers, which are to be shipped in week 8. Subscripts indicate qua

Explain comparable worth, In detail, express your opinion regarding the "Co...

In detail, express your opinion regarding the "Comparable Worth" issue.

Driven process where interventions start immediately, 100-day workout is th...

100-day workout is the term given to an execution driven process where interventions begin immediately, not after a protracted period.

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