Reference no: EM131416693
Rowdy Ranger, Inc. is thinking about opening a new facility to deal with growing demand for his electric nose hair trimmer. The company must decide whether to construct a large, medium, or small facility. The firm’s operations manager has performed a forecasting analysis and estimates there is a 25% chance that demand will slow and a 75% chance that demand will continue to grow.
If Rowdy builds a large facility and demand slows, net profits of $10 million are expected. If demand continues to grow, net profit is expected to be $56 million.
If Rowdy builds a medium-sized facility and demand slows, the net profit is estimated at $28 million. However, if demand continues to grow, Rowdy could either do nothing - for an expected net profit of $48 - or expand. If they decide to expand, there is a 30% chance of realizing a net profit of $44 million and a 70% chance of realizing a net profit of $54 million.
If Rowdy builds a small facility and demand slows, net profits of $40 million are expected. If demand continues to grow, Rowdy could choose to outsource the extra work or expand the facility. If outsourcing is used, the net profit would be $44 million. If expansion is chosen, there is a 35% chance of realizing a net profit of $42 and a 65% chance of realizing net profit of $48.
a. Draw and solve a decision tree for this problem
b. Write your recommendation.
|
Write a paper on likelihood of another extensive glaciation
: Write a one-page paper on the likelihood of another extensive glaciation occurring within the next million years. How about two million years or even 10 million years?
|
|
Discuss the abnormal child and adolescent psychology
: You have started a new job with a cognitive behavioral therapy (CBT) agency that also incorporates other types of evidence-based therapies into its organization. Your boss asks you to run a weekly therapy group to assist high-risk users of crisis ..
|
|
Strategy and policy
: List at least two actions your company should consider taking in order to combat any negative impacts of the competitive driving forces.
|
|
Design a field work process you would recommend to dell
: Design a field work process you would recommend to Dell for gathering consumer behavior information using the text's questionnaire in a computer-store intercept interviewing framework
|
|
About opening new facility to deal with growing demand
: Rowdy Ranger, Inc. is thinking about opening a new facility to deal with growing demand for his electric nose hair trimmer. The company must decide whether to construct a large, medium, or small facility. If outsourcing is used, the net profit would ..
|
|
Discuss about the cultural influence in business psychology
: You are the company's I-O psychologist. Using Hofstede's Five Basic Elements of Culture Distinction, write an e-mail message to the Vice President (VP) of Production discussing at least three cultural differences that Mark will experience in manag..
|
|
Calculate the expected value for each alternative
: Edges Bookstore needs to decide how many copies of a new paperback book to purchase. The store has estimated that demand will be 50, 100, 150 or 200 copies next month and has to decide whether to order 50, 100, 150 or 200 books for this period. Const..
|
|
Summarize the due process requirements prior to a short-term
: Write a 500-750-word essay summarizing the due process requirements prior to a short-term and a long-term suspension of a student in a school district (Given upon agreement of paper).
|
|
Explain the differences between hearing and listening
: Briefly describe? Toulmin's six components of an argument. List the four major communication activities and the percent of communicating time most people spend on each activity. Name and define the four general types of presentations. Explain the dif..
|