Why expected profit to be positive, Operation Management

Assignment Help:

A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be supplied. Each good part sold will yield $30,000. However, if fewer than 4 good parts are produced, none will be purchased. The probability of an individual part being acceptable to the customer is .80. 1/ Determine the optimum batch production quantity given that the job shop has agreed to supply the formed parts. 2/ Is the situation a profitable one for the job shop? I 3/ If not, how must the selling price be changed for the expected profit to be positive?


Related Discussions:- Why expected profit to be positive

Explain what is the role of the osi network layer, What is the role of the ...

What is the role of the OSI network layer when you transfer information from one computer to another? Please do not just copy a ton of paragraphs from a website. I want a one pa

Important functions of maintenance department, Problem 1: What are the ...

Problem 1: What are the important functions of maintenance department? Day to day activities Keeping the machinery, equipment, and services in proper working condition

Regarding process improvement, During the analysis of a process that was ev...

During the analysis of a process that was evaluated, it was seen that the variability was non-random on several occasions, i.e, it did not meet acceptable quality standards. Howeve

Explain organizational learning at alcatel-lucent, How might Verwaayen cont...

How might Verwaayen contribute to organizational learning at Alcatel-Lucent?

Explain implementation and communication of a strategic plan, Why is it imp...

Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why?

Explain importing australian wine to the united states, Food is an integral...

Food is an integral part of understanding different countries, cultures, and lifestyles. In fact, your company is interested in importing Australian wine to the United States. Howe

Explain starting with conceptual design and ending, Maurice Mickle white ha...

Maurice Mickle white has decided to replant his garden. Show him what the cost is of making an erroneous decision at various stages of the project, starting with conceptual design

Explain quality metrics, A variety of organizational culture characteristic...

A variety of organizational culture characteristics make project success more likely. The characteristics include: A. Sufficient funding B. Feasible schedule C. Respect fo

Explain the process of outsourcing, Outsourcing The process of outsourci...

Outsourcing The process of outsourcing the creation of a product or a service is a controversial, yet critical strategic decision for many employers. Describe one example from y

Explain how to identify stakeholders within a project, Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE

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