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 why employees steal property, Discuss what you think are FOUR (4) r...

Discuss what you think are FOUR (4) reasons why employees steal property (office supplies, petty cash, cheat on travel expense reports, parts/ equipment, embezzle money) from their

Historical evolution, What is the historical evolution of operations manage...

What is the historical evolution of operations management?

Explain most apprenticeship programs are in skilled trades, 1. Which one of...

1. Which one of the following statements is NOT true of apprenticeships? Most apprenticeship programs are in the skilled trades. A major advantage of apprenticeships is the a

Define performance appraisal, Define performance appraisal. Performanc...

Define performance appraisal. Performance Appraisal:   It is a systematic and impartial assessment of an employee's performance on the job, along with a view to discovering ho

Explain opportunity costs of capital at tep, How would the EBQ change if th...

How would the EBQ change if the set-up costs were reduced by 50 percent, and the holding costs were reassessed by 40 percent, taking account of the opportunity costs of capital at

Explain if overachievement is acceptable, If overachievement is acceptable,...

If overachievement is acceptable, the appropriate di+ variable can be dropped from the objective function.

Explain major operations planning activities, In an overview of the major o...

In an overview of the major operations planning activities in a typical logistics organization, which of the following activities follows aggregate sales and operations planning? a

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

How to promote a business senior village, Have to set up a Blog for the my ...

Have to set up a Blog for the my inanganiry business, The Business is called "Senior Village" its a whole city in a gated community, the Seniors will not have to leave the grounds

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