Firm decides whether to produce products by onshore plant

Assignment Help Operation Management

Reference no: EM131434355

A firm decides whether to produce products by an onshore plant or an offshore plant. The fixed cost and the variable cost of the onshore plant are dollar 40,000 dollar 1.2, while the fixed cost and the variable cost of the offshore plant dollar 30,000 and dollar 1.0 the variable cost includes all costs related to production and (suppose transportation). The capacities of the onshore plant and the offshore plant are 20,000 and 16,000 respectively. The demand in the next season is estimated to be high, 20,000, with the chance 50percentage, and be low, 18.000, with the chance 50 percentage. The marginal revenue of each unit of product is dollar 5.

Question: Which plant should the firm choose?

Reference no: EM131434355

Questions Cloud

General mills represents and advances goals of stakeholder : analyze how General Mills represents and advances the goals of its stakeholder. Since its inception, General Mills has always strive to take care of its consumers nutritional needs. As they continue to do this, General Mills also seeks to keep their ..

Procedural bar stopped citizens from challenging nomination : When President Obama nominated Hillary Clinton as secretary of state in 2008, several constitutional scholars observed that it may be unconstitutional for her to assume the post due to an often-ignored section of the Constitution. What procedural bar..

Propose at least five system capabilities for the company : Pedal Madness is a bike shop in a large metropolitan area. The shop has experienced considerable growth over the last few years. The owners are frustrated by problems with their current system to track the business. The current system was created as ..

Contrast two different possible business entities : A friend has asked you to help her decide how to protect her soon-to-be-opened bakery from liability, while still maintaining a business structure that fits her needs. Compare and contrast two (2) different possible business entities that would be su..

Firm decides whether to produce products by onshore plant : A firm decides whether to produce products by an onshore plant or an offshore plant. The fixed cost and the variable cost of the onshore plant are dollar 40,000 dollar 1.2, while the fixed cost and the variable cost of the offshore plant dollar 30,00..

Healthcare innovation implementation : According to the readings in Module One, middle managers' role may be particularly important for healthcare innovation implementation because of which of the following: According to the Ted Talk in Module 2, what was Dan Pink's youthful indiscretion ..

Good business decision or union busting : Discuss how the close comparison possible online makes competitive advantages easier to identify? In the age of information and connectivity, what will be happening to the Four P's of marketing, traditional advertising and branding? Which of the argu..

Supervisors that fail to plan formally are planning to fail : "Supervisors that fail to plan formally are planning to fail". Lack of formal planning may cause the organization to lose direction as it loses sight of the organizational goals. It is also important to have plans in place that allow you to remain in..

Googles compensation system : The course project is a series of elements where you will examine the current standing of Google’s compensation system. Conduct an analysis on the current state of the compensation system and address pay-for-performance and benefits of Google.

User Account

All Pages