Describe expected monetary value, Operation Management

Assignment Help:

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?


Related Discussions:- Describe expected monetary value

Emba, How many stamping machines are required?

How many stamping machines are required?

#Case study Turnaround at the Preston Plant, #SPC is an operational level t...

#SPC is an operational level technique of ensuring quality conformance. How many of the benefits of bringing the plant under control would you class as strategic?.

Describe at least four basic factors, In operations management, as in life,...

In operations management, as in life, a balanced approach is often the best policy. One of the best examples of the benefits of this in operations management is the "lean approach"

How did the corporation performs in the return on investment, How did the c...

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Define number of units where either choice has the same cost, Stan Fawcett'...

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3000

Operations sequence analysis, Operations Sequence Analysis Being an ea...

Operations Sequence Analysis Being an early approach to process layouts operations sequence analysis develop a good scheme for arrangement of department graphically analysis t

Explain quality metrics, A variety of organizational culture characteristic...

A variety of organizational culture characteristics make project success more likely. The characteristics include: A. Sufficient funding B. Feasible schedule C. Respect fo

Explain the behaviors often incorporated by entrepreneurial, For years, Dav...

For years, David and Evie Wexler of The Little Guys Home Electronics had many ideas about how to improve the home electronics store in which they were working, but could not put th

Divide items according to category, Drop items into the correct category un...

Drop items into the correct category under "goods company or service company" belonging to which of the 4P's: Goods Company Service Company Product: Price: Place: Pr

Explain microsoft visio erd, Review the information currently housed in Huf...

Review the information currently housed in Huffman Trucking%u2019s database, in the Entities and Attributes for Fleet Truck Maintenance file on the virtual Organizations site. (Cus

Write Your Message!

Captcha
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