Product to increase its value added benefits customers

Assignment Help Operation Management
Reference no: EM132114063

Modifying a product to increase its “value added” benefits customers and can also enhance supplier profits. For example, suppose an improved version of a product increases customer value added by $25 per unit. (In effect, the demand curve undergoes a parallel upward shift of $25.)a. If the redesign is expected to increase the item’s marginal cost by $30, should the company undertake it? b. Suppose instead that the redesign increases marginal cost by $15. Should the firm undertake it, and (if so) how should it vary its original output and price?

Reference no: EM132114063

Questions Cloud

Why are companies reassessing involvement with gun industry : Why are companies reassessing involvement with the gun industry? What is the role of CEOs and business leaders in politically sensitive debates?
Three dimensions of information systems were missing : Discuss what the consequences would be if any one of the three dimensions of information systems were missing.
Understand consumers attitude toward a product or service : Do you feel this type of question helps to understand consumers attitude toward a product or service? How would you interpret the results?
Differentiate among the business agent of local union : Differentiate among the business agent of a local union, a shop steward, and an international union representative.
Product to increase its value added benefits customers : Modifying a product to increase its “value added” benefits customers and can also enhance supplier profits.
What are the society-wide influences on chocolate products : Analyse the macroenvironment. What are the society-wide influences on chocolate products?
What would the selling price and unit in this facility : A global hotel chain considers opening a new facility in the next year. What would the selling price/unit in this facility?
Use both the graphical and algebraic approaches : how many units need to be produced and sold to break even? Use both the graphical and algebraic approaches.
Making decisions on product development : Arnold is the CEO of Beta Corp. Arnold's responsibilities include making decisions on product development, marketing and other significant business directions.

Reviews

Write a Review

Operation Management Questions & Answers

  Traditional and horizontal organization structure

Identify the main types of traditional and horizontal organization structure. Using an organization of your choice as an example how is the structure of the organization a reflection of its environment (including national culture), its goals, and com..

  Group differences should be treated as important-special

Cohesive groups have lower turnover. Group differences should be treated as important and special.

  Which leadership style do you consider the best

What would be the most effective leadership style in the above case scenario using Fiedler's Contingency Theory? Why? Assess your own leadership qualities using what you've learned. What is your natural leadership style? Are you task-oriented or re..

  How should immigration law be reformed

How should immigration law be reformed? Does the United States have any ethical duties to undocumented (illegal) aliens who come here to work?

  What are the characteristics of the environment

What are the characteristics of the environment in which the company operates?

  Organizing function of management

Research on the topic of logistics management or other aspect of management that exemplifies the organizing function of management. See if you can find an interesting case/example to present to the class.

  Physician engagement in strategic planning

What is the importance of having physician engagement in strategic planning for any type of physician–hospital integration structure, or any type of healthcare facility?

  Difference between group and team in organizational setting

Explain the difference between a group and a team in an organizational setting. What are the core differences and what are the similarities?

  Self administered and computer-assisted survey designs

Develop a list of the factors used to select from person-administered, telephone-administered, self- administered, and computer-assisted survey designs.

  The rise and fall of eastman kodak

The Rise and Fall of Eastman Kodak: How Long Will It Survive Beyond 2011? What opportunities & why did Kodak miss them? What did the competition do differently? Why did Kodak fall so far behind? What caused Kodak's demise? What role did Kodak's leade..

  Computes the tact time based on the information given

The management has set a standard which every employee should be able to answer at least 400 e-mails during every shift. Computes the tact time based on the information given.

  Incorporate ancillary services of complementary

Assume you were asked by a large health system in which you are employed to prepare a feasibility study to incorporate ancillary services of complementary

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