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

Compute xpected top-down estimated cost for project, You have been asked to...

You have been asked to estimate the costs for a project to build an industrial power plant. Based on historical data, the steam turbine accounts for 30 percent of the total costs f

Explain why do you prefer that method, We need to consider some accounting ...

We need to consider some accounting ideas in order to cover this week%u2019s Objective # 3. So in that regard, for your own business, which method of accounting would you use, the

Master production scheduling, Master Production Scheduling The master s...

Master Production Scheduling The master schedule ( or master production schedule of MPS) sets the quantity of each end item (finished product) to be completed in each time peri

Explain the effective general leadership traits, For years, David and Evie ...

For years, David and Evie Wexler of The Little Guys Home Electronics had many ideas about how to improve the home electronics store in which they were working, but could not put th

LP, A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW...

A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW MATERIAL RESTRICTIONS, IT CANNOT PRODUCE MORE THAN 400 TONS OF GRADE X PAPER AND 300 TONS OF GRADE Y PAPER I

Define what is the time between orders, Hottenstein, Griffith, and Hult, at...

Hottenstein, Griffith, and Hult, attorneys at law, do a great deal of printing. The firm uses a single type of printer with annual demand for print cartridges of 480 per year. The

Discussion questions for barriers to enterprise, Complete the Case Study Di...

Complete the Case Study Discussion Questions and Critical Thinking Questions in Case Two "Barriers to Enterprise 2.0," Stair,

Explain cost of a project, illustrate how to effectively and efficiently re...

illustrate how to effectively and efficiently report on the cost of a project to the different stakeholder groups • Use figures and tables to provide examples • Show calculat

Describe in light of accounting scandals, One of the most influential piece...

One of the most influential pieces of legislation was the Sarbanes-Oxley Act of 2002. This act greatly increased the transparency of financial disclosure in light of accounting sca

Objectives of motion study, Objectives of Motion  Study 1.   Combine  ...

Objectives of Motion  Study 1.   Combine  relative  activities. 2.   Increases the  efficiency of activities. 3.   Reduce physical fatigue. 4.   Eliminate as many unne

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