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

Decision making process for ethical solution, Profits have been decreasing ...

Profits have been decreasing and power plant executives are considering whether to use a production process that decreases costs (and therefore increases profits) but adds to the p

Explain key aspects of operations management, 1- With respect to a firm's s...

1- With respect to a firm's supply chain design, what are some key challenges in terms of achieving an optimal level of mass customization? 2 - Articulate key aspects of operati

Explain tool like this one help identify the target market, Complete the fo...

Complete the following steps for this assignment: 1. Select the following link to visit a Web site that is an online demographic tool used to help establish demographics about c

Main orientations to the approach and practice of retailing, Explain the fo...

Explain the four major orientations to the approach and practice of retailing.

A budget is using which manager who is using spreadsheet, a budget is using...

a budget is using which manager who is using spreadsheet software to prepare department budget is using which managerial skills according to Katz/1.human/ 2.technical/3.conceptual/

Explain greatest amount of flexibility possible, To meet investor objective...

To meet investor objectives, management seeks to do which of the following in its present operations as well as shift investment from areas with declining returns to those where im

Capacity planning and control , Analyse a given situation and select a capa...

Analyse a given situation and select a capacity planning and control approach

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