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

Describe the key factors that impact location decisions, Discuss the key fa...

Discuss the key factors that impact location decisions. As an example, if locating a facility in India, what location decisions would a fast-food chain have to consider as compared

Design a operations management system, The purpose of operations management...

The purpose of operations management is to make the best use of productive resources. It entails the design and control of all the systems for the productive use of various raw mat

Explain xerox customer-service teams, When it comes to how a team is design...

When it comes to how a team is designed (i.e., members, communication, goals, norms, etc.) and team leadership, which of the following statements is most true based upon the studie

Describe concurrent control, What are: Concurrent Control? Feed forward Con...

What are: Concurrent Control? Feed forward Control? Feedback Control? Give an example of each.

Illustrate overview of operational functions or departments, Illustrate the...

Illustrate the overview of operational functions or departments? Organisations create products or deliver services and act rely heavily onto operational processes to create eff

Explain communication is a two-way process, Communication is a two-way proc...

Communication is a two-way process. Communication is a series of loops. A message must be sent and the message must be received. However, the message must also be understood and ac

Explain marketing infant formula in a developing country, Under what circum...

Under what circumstances, if any, would a firm be justified in marketing infant formula in a developing country?

How you would address project management situation, MBTI and Keirsey Temper...

MBTI and Keirsey Temperament Sorter Describe the challenges you foresee in using the MBTI instrument or Keirsey Temperament Sorter in a project management situation and how you wo

Explain diagnostic equipment and communications, Last year, the manager of ...

Last year, the manager of the service department at East Woods Ford instituted a customer opinion program to find out how to improve service. One week after service on a vehicle wa

Describe international compensation, Existing salary for managers is 45,000...

Existing salary for managers is 45,000 euros (58,567 us dollars) plus bonuses. Average salary for managers in range is 60,000 euros (78,090), no bonuses. Recommendations must inclu

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