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Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $9 million. Were demand to be low, the company would expect $10 million in discounts revenues with the large plant. If demand is high the company estimates that the discounted revenues would be $14 million. In either case, the probability of demand being high is .40, and the probability of it being low is .60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Expando make the best decision.
You are designing a grocery delivery business. Via the Internet, your company will offer staples and frozen foods in a large metropolitan area and then deliver them within a customer-defined window of time
Illustrate what is number of orders per year if manager uses current order quantity of 1600. Also illustrate what is number of orders per year if manager uses Economic Order Quantity.
You are required to produce a management report from the perspective of a consultant, reporting back to your client - the CEO of an overseas museum.
Companies that do business with customers in developing nations that lack access to hard currencies are likely to make extensive use of:
The local convenience store makes bread. Currently, their oven can produce 50 pieces of bread per hour. It has a fiixed cost of $2,000, and a variable cost of $0.25 per bread.
Evaluate the key strategy implementation efforts at Henkel. Has management allocated sufficient resources to the strategy execution effort?
the production manger advises the manufacturer that the factory should go for manufacturing instead of procuring them from the open market.list out reasons for the decision of the production manager backed up by the necessary data.
If you had been IS head at NIBCO, illustrate what approach would you have recommended also explain why.
Compare and contrast the different kinds of costs in carrying inventory and what role the inventory turnover ratio has in determining those costs. Then think about a product(s)
Has Toyota successfully enacted the principles espoused in the Toyota Way? What did they do well, and where is there room for improvement?
Describe how the perpetual inventory system works. What are some advantages of using the perpetual inventory system?
Find the schedule and cost variances for a project that has an actual cost at month 22 of $540,000, a scheduled cost of $523,000, and an earned value of $535,000.
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