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 intangible assets and human capital, Companies are now more and mor...

Companies are now more and more interested in using intangible assets and human capital as a way to gain an advantage over competitors. True False

Benchmarking, I need an assignment regarding benchmarking in Operations Str...

I need an assignment regarding benchmarking in Operations Strategy

Decision making approaches, Decision Making Approaches General Framewo...

Decision Making Approaches General Framework Outline the meaning of Rationality, Bounded Rationality and Intuitive approaches to decision making. Individual Components

Explain legal side of the decision-making process, Assume that as a result ...

Assume that as a result of HR planning, a mental hospital identifies a shortage of therapists but a surplus of case workers. Discuss the actions that you would take to address the

What is meant by perpetual inventory system?, Ask question #What is meant b...

Ask question #What is meant by perpetual inventory system?Minimum 100 words accepted#

Compare as well contrast copyrights, Compare and contrast patents, copyrigh...

Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.

OPERATTION MANAGEMENT, DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES...

DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES IN MANFACTURING

Explain multiplying the cumulative error by mad, 1. as the amount of on han...

1. as the amount of on hand inventory increases, A. shortage cost increase and carrying costs increase B. Shortage cost decrease and carrying costs increase C. both shorta

Plan a policy for scheduling vacations, Outline a policy for scheduling vac...

Outline a policy for scheduling vacations for a Health Information Management Department that provides daily, around-the-clock service and has both full time and part time employee

Explain why are uniform laws like the ucita necessary, Why are uniform laws...

Why are uniform laws like the UCITA and the UETA necessary? Does it make any difference if these uniform laws are not enacted in every state? How should the law be applied to a dis

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