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

Essentials of management, write and explain the essentials of management gi...

write and explain the essentials of management giving practical examples

How select an active engineering company, Select an active Engineering Comp...

Select an active Engineering Company, performing a brief research quote the company's mission statement, list 3 current strategies of the company and discuss how they are in alignm

Devise a regression equation or predict the profitability, Consider the tab...

Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit

Find which city provides the lowest overall costs, Kelly Trucking, Inc., is...

Kelly Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed

Sffdfd, Why mary parker follett ideas tended to be popular

Why mary parker follett ideas tended to be popular

What are the arguments for as against social responsibility, What are the a...

What are the arguments for and against social responsibility on the part of businesses? Please in addition, which set of arguments is more compelling?

Explain mechanistic or organic organization, Does Mr. Goodnight want to cre...

Does Mr. Goodnight want to create more of a mechanistic or organic organization? Explain

Which factors influence the choice of evaluation design, What factors influ...

What factors influence the choice of evaluation design? Which of these factors would have the greatest influence on your choice of an evaluation design? Which would have the smalle

Explain functions in which industrial manager is involved, Explain function...

Explain functions in which industrial manager is involved? The Industrial Manager is occupied in the given functions:- (i) Design products which will find acceptance in comp

Maximum product exposure - facility layout, Maximum Product Exposure - Faci...

Maximum Product Exposure - Facility Layout  In layout of retail stores, basic purchases and check-out stations are often positioned remote from the shop entrance, obliging the

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