What do you recommend to maximize the expected profit

Assignment Help Operation Management
Reference no: EM131700553

FarmCo produces case of bananas. Each case costs $7 and sells for $16. Based on their historical data, daily demand for banana was realized as 400 cases or 450 cases or 500 cases If there are any cases not sold by the end of the day, they are sold to a food processing company for $4 a case. The probability that daily demand will be 400 cases is 0.30, the probability that daily demand will be 450 cases is 0.45, and the probability that daily demand will be 500 cases is 0.25. There is no cost when FarmCo does not satisfy customer demands

(a) Construct a decision table for this problem.

(b) What do you recommend to maximize the expected profit?

Reference no: EM131700553

Questions Cloud

Determine the implications of the demographic trend : The population is aging because of declining birth rates, declining death rates, and the aging of the baby boom generation.
Important in project selection : What opportunity costs must be considered in project selection? What other criteria would be important in project selection?
Discuss ulterior motives for dropping the bombs : What do you think. The Truman administration argued that the United States used the atomic bombs to end the war sooner and save countless lives
Discuss five conflict management styles : Discuss five conflict management styles.Many companies sell conflict style questionnaires for use in organizations.
What do you recommend to maximize the expected profit : FarmCo produces case of bananas. What do you recommend to maximize the expected profit?
Describe the characteristics of national culture : How do political, legal, and economic forces shape national culture? What characteristics of national culture do you think have the most important effect.
Calculate the number of bytes : Calculate the number of bytes and compare it to the number of bits in a megabit. If there is a difference, explain why that is the case. Cite your sources.
How many have thought about where your food comes from : Assignment: Informative Speech. Genetically Modified Organisms By Michael Whites. How many of you have thought about where your food comes from?
Explains what silence suppression is : explains what silence suppression is, why silence suppression is used, what could be used instead of silence suppression

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