Define the order quantity and expected profits, Operation Management

Assignment Help:

suppose the manufacturer has an inflated demand forecast as follows: Quantity Probability 2,200 5% 2,300 6% 2,400 10% 2,500 17% 2,600 30% 2,700 17% 2,800 12% 2,900 3% (a) Suppose the manufacturer is make-to-order (timing of events as in (b). Using you contract in (b)(ii), find the order quantity, and expected profits of the distributor and of the manufacturer. Compare your answer with (b)(ii). (b) Suppose the manufacturer is make-to-stock (timing of events as in ( c ).using your contract in ( c)(ii), find the production quantity, expected profits of the manufacturer and of the distributor. Compare your answer with (c )(ii (c) If you are the distributor and you have the choice of revealing the true demand forecast or inflated demand forecast to the manufacturer, what will you do in each case? Explain.


Related Discussions:- Define the order quantity and expected profits

Aggreate planning, Identify (a) the demand options for aggregate planning; ...

Identify (a) the demand options for aggregate planning; and (b) the capacity (supply) options for aggregate planning

Explain expert role for human resource professionals, The functional expert...

The functional expert role for human resource professionals: Answer A) is concerned with looking out for the interests of management B) is concerned with providing inputs that help

Generate a table that includes all of the key elements, Create a table that...

Create a table that includes all of the key elements that you think an organization must focus on to promote change

Explain good business practices and ethics, Kim was in a financial bind. Ju...

Kim was in a financial bind. Just last year, she had purchased a personal plane and an exclusive home that housed the plane in its garage. The total costs were $1 million and Kim's

Offer description of the term product strategy, Provide a brief description...

Provide a brief description of the term product strategy

Explain formal communication chain effective, Most organizations possess so...

Most organizations possess some formal organizational chart showing the established lines of authority and the division of labour. Generally, formal processes of communication are

Explain course wrap-up, "Course Wrap-Up" Please respond to the following: I...

"Course Wrap-Up" Please respond to the following: Identify three concepts from your graduate course work that you found to be of significant value and explain how you plan to apply

Explain the features of six sigma, Question 1: Explain the features o...

Question 1: Explain the features of Six Sigma. • shifts the paradigm quality as the cause of good business performance • The philosophy is to make fewer mistakes. • Is a

Explain core value functioning system, In what ways and with two examples, ...

In what ways and with two examples, did Mentor Graphics fail at not focusing on where they wanted to be in the future, in giving a clear definition to the employees and creating a

Explain human resource management contribution, How can human resource mana...

How can human resource management contribute to a company's success?

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