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Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $9 million. Were demand to be low, the company would expect $10 million in discounts revenues with the large plant. If demand is high the company estimates that the discounted revenues would be $14 million. In either case, the probability of demand being high is .40, and the probability of it being low is .60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Expando make the best decision.
An accounts payable manager processes 200 checks per day with an average processing time of 15 working days. What is the average number of accounts payable checks being processed i
A key factor that makes Lean Six Sigma different than other performance improvement models is that it free discusses costs and cost recovery with varying stakeholders.
evulation of manufacring to operation
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what are the factors to be considered when making location decisions
Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit
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