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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?
Having determined all ui and vj values calculate for each unoccupied cell ij = ui + vj - cij. The ij represent the opportunity costs of various cells. After obtaining the opportuni
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Calculate the future value of 2,000 in 1. 5 years at an interest rate of 6% per year 2. 10 years at an interest rate of 6% per year 3. 5 years at an interest rate of 7% pe
Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to
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Examples of Variations - Operations Function Volume Low: Small quantities
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An assembly line normally operates two shifts a day, five days per week. The planned capacity of the assembly line is 380 units/shift. Determine the average safety capacity if 700
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