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XYZ coating company has reviewed four new processes for improving their coating line. The four processes, labeled A, B, C, and D use different technology and have different capacities. All the processes have the same level of production and the lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Forecasts indicate that there is a 0.4 probability of acceptance level 1, 0.3 chance of acceptance level 2, 0.6 chance of acceptance level 3, and 0.5 change of acceptance level 4. Consumer Acceptance Level (states of nature) 1 2 3 4 Alternative A 1 2 3 4 35 55 85 165 Alternative B 1 2 3 4 -105 -5 155 225 Alternative c 1 2 3 4 75 85 75 65 Alternative D 1 2 3 4 55 55 75 65 Using the criterion of expected monetary value, which production alternative should be chosen?
Considering Strategic Choice - Operation Strategy (Strategic analysis will be covered in Strategy - Analysis and Evaluation). The following points are an extract from Port
1. A hospital emergency room averages 50 patients per shift. A shift is 8 hours long, and the average patient requires 20 minutes in the exam room. a. How many exam rooms should
Which of the following is an inequality or equation that expresses a restriction in a mathematical model? Decision variable Parameter Objective function Constraint N
1. Maggie Company produces a light fixture with the following unit costs: Direct Materials: $2 Direct Labour: $2 Variable Cost: $3 Fixed Cost: $2 UNIT TOTAL COST: $9 The
The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of ea
1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one
1. What you think might be the order winning and order qualifying criteria for: McDonald's, Southwest Airlines and a university? Answer:
Factors for plant Location choice - Suitability of Climate The climate has its own importance in the location of a plant because of two reasons. First there are certain indust
Elements of Production Control 1.Control of the Planning: Assure receipt of latest forecast data from sales and production planning bill of material data from product engineer
What are your thoughts on this article ?According to an article dated February 24, 2013 in the Tech section USA Today News (electronic issue), many employers maybe missing out on h
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