Explain expected profit function to be maximized, Operation Management

Assignment Help:

A foundry receives an order for specialty castings. Cost of producing each casting is estimated to be $15,000. The customer requires that exactly 4 good castings be supplied. The customer will pay $20,000 for each good casting. If fewer than four good castings are available, none will be purchased. Each casting is produced independently and the probability of an individual casting being acceptable to the customer is .80. 1/ Develop the expected profit function to be maximized? 2/ Determine the production lot size that maximizes expected profit? 3/ Determine the lot size that will yield a probability of .90 of producing at least 4 good castings. What is the expected profit for the lot size obtained?


Related Discussions:- Explain expected profit function to be maximized

Explain what is controlling, Explain what is Controlling. Controlling i...

Explain what is Controlling. Controlling is defined as which managerial function that seeks to ensure an absolute conformity of actual performance through organizational person

Explain different forecasting techniques, An analyst must decide between tw...

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is

Supplier sourcing strategies in the purchasing department, Q. What are the ...

Q. What are the Supplier sourcing strategies in the purchasing department? Supplier sourcing strategies: It is the responsibility of the purchasing department: a. Single sou

Service operations managers - left in the dust, Ques: On what basis do you ...

Ques: On what basis do you think Schmenner (1986) suggests that service managers who see themselves as unique may be 'left in the dust'? Ans: Schmenner (1986) suggests that if s

Explain the impact of the solicitation process, Describe the impact of the ...

Describe the impact of the solicitation process and how it determines the preparation of your bid.

What is process of implementing a new strategy, In most cases, organization...

In most cases, organizations adjusted their structures as part of the process of implementing a new strategy. Why might this practice not be advisable?

Explain the most likely outcome of leon''s lawsuit and why, Leon, a bank v...

Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract for the membership. The contract stated, among other things, an exculpatory clause that FC.

Explain effective project chartering process, Effective project chartering ...

Effective project chartering process contains multiple project types and projects laid out on a month to month basis.

Explain the challenges faced by front-line employees, Discuss how front-lin...

Discuss how front-line employees are critical to customer assessment of service quality. Identify the challenges faced by front-line employees.

Group technology - cellular manufacturing system, Group Technology- Cellula...

Group Technology- Cellular Manufacturing System In group technology/ cellular manufacturing (CM) machines are grouped into cells and the cells functions somewhat like a produc

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