Review the case of the manufacturing plant

Assignment Help Management Theories
Reference no: EM131601885

Question: A manufacturing plant has reached full capacity. The company must build a second plant-either small or large at a nearby location. The demand is likely to be high or low. The probability of low demand is 0.3. If demand is low, the large plant has a present value of $5 million and the small plant, a present value of $8 million. If demand is high, the large plant pays off with a present value of $18 million, and the small plant with a present value of only $10 million. However, the small plant can be expanded later if demand proves to be high for a present value of $14 million.

a. Draw a decision tree for this problem.

Reference no: EM131601885

Questions Cloud

Which country has the absolute advantage in wine : If France can produce either 20 wines or 10 chocolates with a resource unit and Germany can produce 30 wines or 10 chocolates with a resource unit.
Explain random walk and price patterns : Explain random walk and price patterns. Identify the foundations of technical analysis.
Cost-based and value-based pricing methodologies : Given the differentiation between Cost-based and Value-based pricing methodologies,
Discuss your opinion regarding why managed care organization : discuss your opinion regarding why managed care organizations did or did not have the intended effect
Review the case of the manufacturing plant : A manufacturing plant has reached full capacity. The company must build a second plant-either small or large at a nearby location.
Configure the network in a less secure manner : MN501 - The purpose of this assignment is to develop skills in research, critical analysis and academic writing of high standard.
Writing an article for time magazine australia : Imagine that you work for Time Magazine Australia, and that the managing editor, Randall Lane, has asked you to write a story.
What is likely to be the price of the stock : This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the Stock?
How much of accounting department costs will be allocated : The costs will be allocated based on the number of employees using the direct method. How much of the accounting department costs will be allocated

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

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