Advanced production line and standard production line

Assignment Help Operation Management
Reference no: EM131640205

The US has a big market for pet toys. The operations manager of Squeakers, a pet toy manufacturing company is now seriously thinking of adding a new production line for a special type of pet toys. There are two options of production lines that Squeakers can choose: Advanced production line and Standard production line. The former will cost Squeakers $400, 000; and the latter will only cost $300, 000. The market for the special pet toy is believed to be high at $600,000 at 2/3 chance, and low at $300,000 at 1/3 chance. When the market is high, the advanced production line is capable of handling the high figure of $600,000. However, a standard production line needs some expansion at a cost of $150,000. After the expansion, the sales would be $500,000 due to the lost time during the expansion. If the standard production line is not expanded, the sales would be only $400,000. When the market is low, both production lines are able to satisfy all of the demand. If the market is low, what is the net profit if you build an advanced line? Select one: a. -100,000 b. 0 c. 50,000 d. 100,000 e. 200,000.

Reference no: EM131640205

Questions Cloud

Define what teaching should the nurse do with francesca : What diagnostic tests should the nurse expect to be ordered?
Advantages of holding futures : What do you think are the advantages of holding futures rather than the underlying commodity? What do you think are the disadvantages?
Conducting an analysis of the social space of a decision : Which of the following is an example of an external force that can be surfaced when conducting an analysis of the social space of a decision?
Compute the return from each strategy : You have $10m to invest, and you are considering the returns associated with different trading strategies centering on the S&P 500 index
Advanced production line and standard production line : There are two options of production lines that Squeakers can choose: Advanced production line and Standard production line.
Create the journal entries for both funds : The premium is transferred to the debt service fund. Create the journal entries for both funds
How many people earned bachelor degrees : What percentage of each level of degree is earned by women? Write a brief description of what the data show about the relationship between gender and degree.
Determine the amount of recognized gain on the sale : Jim Sarowski (SSN 000-00-2222) is 70 years old and single. Determine the amount of recognized gain on the sale of the residence
What do you find about long guns versus handguns : Make a careful comparison of homicides and suicides, with a bar graph. What do you find about long guns versus handguns?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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