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

Explain the affidavit, Which section of the project charter signed by spons...

Which section of the project charter signed by sponsor, project manager and core team members typically describes decision authority and the expected commitment for each of these k

Explain about the organization and its resources, 1. How to characterize yo...

1. How to characterize your supervisor's approach to management? For example, which particular management tasks and roles does this person perform most often? What kinds of managem

Explain the ebq model, Applying the EBQ model, what batch size would you re...

Applying the EBQ model, what batch size would you recommend for this product? How long will each batch take to produce, and how many batches per year will be made? Should this mode

Value driven approach , Value Driven Approach The second approach is a...

Value Driven Approach The second approach is a value drive approach to operations management. The value driven approach starts by recognizing that a business is a set of proce

Explain what leadership style dominates at novo nordisk, A wide array of le...

A wide array of leadership perspectives and theories. In order to synthesize the information, it is best to look at a real-life situation and analyze the leadership styles. Case 14

MAD & MAPE, Sales of vegetable dehydrators at Bud Banis'' discount departme...

Sales of vegetable dehydrators at Bud Banis'' discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of expon

How to determine the upper control limit, Six samples of subgroup size 5 (n...

Six samples of subgroup size 5 (n=5) were collected. Determine the upper control limit (UCL) for an X-Bar chart if the mean of the sample averages is 4.7 and the mean of the samp

Line Balancing, What do you understand by line balancing? what happens if b...

What do you understand by line balancing? what happens if balance doesn''t exists?

Describe skills or abilities you would need to develop, "CIOs" Please respo...

"CIOs" Please respond to the following: •Assess the role of the CIO within any health care organization and describe the key characteristics a CIO would need to possess to be effec

Define potential risks and bottlenecks that occur in project, Briargrove ha...

Briargrove has agreed to your plan. The CLN Team is asking for a refined version of the plan making the corrections based on their recommendations. They are requesting a comprehens

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