Maximize the suppliers expected profit

Assignment Help Operation Management
Reference no: EM132266524

A machinery supplier has a new machine which a customer is willing to buy for $10,000, but only if it works immediately after installation. Otherwise the machine will be sent right back and the supplier will recieve nithing. The machine will only works if a key part is sufficiently flat. The supplier can send the machine as is, or firs scan the surface for faults before shipment. One scan cost $500, and two scan $900. Each scan has a 90% chance of finding faults eventhough its not. Another option is to overhaul the machine before sending it at a cost of $2000. If during the overhaul the part is found not be sufficiently flat, it can be fixed for another $100 and the the supplier is then 100% sure it will work. What course of action will maximize the suppliers expected profit?

Reference no: EM132266524

Questions Cloud

How would you describe the tone of this piece : CORE 274 : What is likely the purpose of this piece? Does the piece speak appropriately to whom you think is its intended audience?
Calculate social security taxes : Calculate Social Security taxes, Medicare taxes and FIT for Jordon Barrett.
Build the brand equity of chosen family brand : Where we have to develop an intregated brand promotion campaing for a new product that will build the brand equity of the chosen family brand.
What lessons did you learn from the box case study : In preparation for this discussion, read Chapter 5 in your textbook and review the Harvard Business Review case study "Box: The Evolution of Management Practice
Maximize the suppliers expected profit : What course of action will maximize the suppliers expected profit?
What is the ethical perspective regarding the risks : Consider yourself as an HR professional in the industry and region you hope to be employed. What are the foremost environmental risks to be aware.
Discuss ethical ways for mitigating risks : Briefly summarize the article (1-3 paragraphs). Discuss ethical ways for mitigating risks with key stakeholders, considering practical implications to executive
What did george boole consider the real purpose of logic : What did George Boole consider the real purpose of logic? What are Boolean operators? What is the Calculus of Reasoning?
What type of attitude did management display throughout : What was the role of management in the process? What type of attitude did management display throughout the process?

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