Reference no: EM131252924
Assignment Description
BUYU Manufacturing has been contracted to provide SAEL Electronics with printed circuit and motherboards (PC) boards under the following terms:
• 100,000 PC boards will be delivered to SAEL in one month.
• In 3 months, SAEL has an option to take the delivery of an additional 100,000 boards by giving BUYU a 30-day notice.
• SAEL will pay $5 for each board it takes.
BUYU manufactures the PC boards through a process called batching, and manufacturing costs are as follows:
• The manufacturing batch run has a fixed setup cost of $250,000, regardless of the run size.
• The marginal manufacturing cost is $2.00 per board, regardless of the size of the batch run.
BUYU must decide whether it should manufacture all 200,000 PC boards now, or if it should manufacture 100,000 now and the other 100,000 boards only if SAEL decides to buy them. If BUYU manufactures 200,000 now and SAEL does not exercise its option, then BUYU will lose the manufacturing cost of the extra 100,000 boards. BUYU believes that there is a 50% chance that SAEL will exercise its option to buy the additional 100,000 PC boards.
1. Discuss the potential profit of manufacturing all 200,000 boards now.
2. Draw a decision tree for the decision that BUYU faces.
3. If BUYU uses its expected profit as the basis for its decision, determine the preferred course of action.
4. Determine the range of values of the probability that SAEL will exercise its option, making the decision found in part c as optimal, and determine the expected value of perfect information about whether SAEL will exercise its option.
5. Assume now that BUYU is constantly risk averse with a risk tolerance of $100,000, and answer parts 3 and 4 again.
|
Payoffs in a variant of bos with imperfect information
: Verify that B is a best response of type y1 of player 1 to the pair (B, S) of actions of player 2, and S is a best response to the pair of actions (S, S).
|
|
Finding the length of the longest path in a dag
: Design an efficient algorithm for finding the length of the longest path in a dag. (This problem is important both as a prototype of many other dynamic programming applications and in its own right because it determines the minimal time needed for..
|
|
Design a dynamic programming algorithm
: Design a dynamic programming algorithm and indicate its time efficiency. (The algorithm may be useful for, say, finding the largest free square area on a computer screen or for selecting a construction site.)
|
|
Flesch reading ease score
: Explain your findings. Based on the readability tests you conducted, assess whether you consider the excerpt contains language which would be suitable for a business document and enhances readability. The excerpt should be supplied by mail/fax or ..
|
|
Determine the preferred course of action
: Determine the range of values of the probability that SAEL will exercise its option, making the decision found in part c as optimal, and determine the expected value of perfect information about whether SAEL will exercise its option.
|
|
Guarantee the success of a business
: While there is no blueprint or checklist that one can follow to guarantee the success of a business, much can be learned from analyzing those that have failed and those that have flourished during the same time period and under similar circumstanc..
|
|
Write pseudocode of the bottom-up dynamic programming
: Write pseudocode of the algorithm that finds the composition of an optimal subset from the table generated by the bottom-up dynamic programming algorithm for the knapsack problem.
|
|
Research and the purpose of the study
: 1. Restate the objective of your research and the purpose of the study 2. Discuss the data that you need to conduct the study 3. Discuss the limitations and challenges you faces
|
|
What is the central theme of your music selection
: What is the central theme of your music selection? How does the composer develop the theme musically? Using sources under the Explore heading as the basis of your response.
|