Valuate the production quantity, Operation Management

Assignment Help:

Using the data, suppose the manufacturer has an inflated demand forecast as follows:

Quantity Probability

2,200 5%

2,300 6%

2,400 10%

2,500 17%

2,600 30%

2,700 17%

2,800 12%

2,900 3%

(a) Suppose the manufacturer is make-to-order (timing of events as in 9(b). Using you contract in Question 9(b)(ii), find the order quantity, and expected profits of the distributor and of the manufacturer. Compare your answer with 9(b)(ii).

(b) Suppose the manufacturer is make-to-stock (timing of events as in 9( c ).using your contract in Question 9 ( c)(ii), find the production quantity, expected profits of the manufacturer and of the distributor. Compare your answer with 9 (c )(ii)

(c) If you are the distributor and you have the choice of revealing the true demand forecast or inflated demand forecast to the manufacturer, what will you do in each case? Explain


Related Discussions:- Valuate the production quantity

Explain modifications to the franchisor''s product offering, Do you think t...

Do you think that franchisors should allow franchisees to make modifications to the franchisor's product offering, explain? Please put in your own words

Find project labour hours and cost and what profit amount, Midway through t...

Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project labour hours

Efforts to reduce materials waste & procure materials, 1. In the hypothetic...

1. In the hypothetical manufacturing company (figure) what other actions do you think management might take in addition to their efforts to reduce materials waste, procure material

Explain what is the utilization of pharma, Pharma Blitz develops and market...

Pharma Blitz develops and markets new technological products to be used in health care. The development of a new product operates as follows. When a new technology meets the requis

What additional annual cost is the shop incurring by staying, Garden Variet...

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

How understanding of consumer behaviour helped groupon grow, How has an und...

How has an understanding of consumer behaviour helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today? What is the Groupon Prom

Explain important terms of the factories act 1948, Explain important Terms ...

Explain important Terms of the factories act 1948. Important Terms of act: (a) Factory:  A place wherein ten or more persons are working and wherein a manufacturin

Explain when acquiring an innovative technology externally, Your company, a...

Your company, a large online high school, is planning to implement a new innovative social networking technology for their students. The technology would allow students to get to k

Explain carpet cleaning machine, Gabriela Manufacturing must decide whether...

Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to in

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