Explain expected profit function to be maximized, Operation Management

Assignment Help:

A foundry receives an order for specialty castings. Cost of producing each casting is estimated to be $15,000. The customer requires that exactly 4 good castings be supplied. The customer will pay $20,000 for each good casting. If fewer than four good castings are available, none will be purchased. Each casting is produced independently and the probability of an individual casting being acceptable to the customer is .80. 1/ Develop the expected profit function to be maximized? 2/ Determine the production lot size that maximizes expected profit? 3/ Determine the lot size that will yield a probability of .90 of producing at least 4 good castings. What is the expected profit for the lot size obtained?


Related Discussions:- Explain expected profit function to be maximized

Explain model of behaviour modification, Model of behaviour modification an...

Model of behaviour modification and the four contingencies of reinforcement.(cited/referenced)

What are the main points of the new science of leadership, Based on the Lon...

Based on the London interview with Margaret Wheatley, "The New Science of Leadership," write 2 paragraphs describing Wheatley's theories and perspectives of leadership and organiza

forecast of inflation, Aman work at the Bank, to help customers, including...

Aman work at the Bank, to help customers, including retired people, to plan for the future.  Often the value of pensions does not keep up with inflation.  Hence retired people requ

Explain what factors have contributed to its growth, When was the Mexican a...

When was the Mexican aerospace industry established and what factors have contributed to its growth?

Explain the consumers have a high debt-to-income ratio, In the U.S., consum...

In the U.S., consumer expenditures on homes and other large purchases tend to slow down during a recession because a. of steady supply of loanable funds in the economy dur

Explain enable them to limit the probability of a stockout, A wine company'...

A wine company's daily demand is normally distributed with a mean of 18 bottles, and a standard deviation of 4 bottles. This company checks their winery's stock every 30 days. In t

List out reasons for the decision of the Production Manager, List out reaso...

List out reasons for the decision of the Production Manager backed up by the necessary data

Define job evaluation, Define job evaluation. Definition: Job evaluatio...

Define job evaluation. Definition: Job evaluation is a systematic process of evaluating various jobs of an organization. Depending on the characteristics and needs of a job, jo

Explain crossover point among the existing process, The local convenience s...

The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and

Explain what is the role of participation in goal setting, What is the role...

What is the role of participation in goal setting? Answer Participation is positively correlated with performance Participation provides more goal clarity Participation

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