Whats the total profit of the batteries after replacement

Assignment Help Operation Management

Reference no: EM131433436

The marketing and production managers of a new car battery are planning to start a new advertising campaign. The most important message of the advertising is the lenght of the guarantee of battery life. The manager know that the life of the battery is normally distributed with a mean of 3.5 years and a standard deviation of 1 year. a) generate the battery life for 2000 batteries b) Determin 98% confidence interval for battery life c) How many % of battery will not function after 2 years d) how many % of battery will not function after 4 years? e) The managers would like to advertise a replacement guarantee if a battery dies before 2.5 years. How many percent of battery should be replaced? f) If the cost of the replacement of each battery is 65$, what's the total replacement cost for the average demand based on 1000 replications, if probability distribution of the demand is as follow Prob Demand 0.1 10000 0.35 20000 0.30 25000 0.20 15000 0.05 5000 g) If selling price of each battery is 125, whats the total profit of the batteries after replacement? h) If cost of replacement exceed 10% of the total revenue (before replacement) managment should review and revise their replacement policy, Based on your simulation does company need to revise the replacement policy?

Reference no: EM131433436

Questions Cloud

Security contractor that provides computer security analysis : SecureIT, Inc., is a small computer security contractor that provides computer security analysis, design, and software implementation for commercial clients. Almost all of SecureIT work requires access to classified material or confidential company d..

What is emotions and moods : What is emotions and moods? How do emotions and moods influence behavior in organizations?

Decontamination and victim chain of survival : For this assignment, you are required to read the article entitled "HazMat Emergencies: Decontamination and Victim Chain of Survival," by Gunderson, Helikson, and Heffner (2014), and write a review. The article may be found in the Academic Search ..

What have real countries done to deliberately influence : Imagine you are the Head of State for a country and must prepare a presentation regarding the cultural significance of the country. The country is about the size and geography of Texas and it has a border with the ocean and another with a country ..

Whats the total profit of the batteries after replacement : The marketing and production managers of a new car battery are planning to start a new advertising campaign. The most important message of the advertising is the lenght of the guarantee of battery life. The manager know that the life of the battery i..

Core functions of business intelligence : Three core functions of Business Intelligence (BI) are query, reporting, and analytics. Queries are one way to access a particular view of the data or to analyze what is happening or has happened. For operational BI, data is typically accessed or dis..

Take a moment to compare the strengths and weakness : Paper Details As we have seen through our readings, governments differ on where the power of the state should be held. Unitary systems concentrate the power within the central government and little or no authority is granted to the component areas..

Organizational learning and creativity play : How does organizational learning and creativity play in helping managers to improve their decisions?

Who evidenced dependence by an inability to stop drinking : BEHS 364- Who evidenced dependence by an inability to stop drinking once started? Who had an inability to refrain from starting to drink? Who practiced controlled drinking?

User Account

All Pages