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 project manager make changes to a baseline, under what conditions w...

under what conditions would a project manager make changes to a baseline? Be sure to give at least 1 example for each condition

Explain evaluation or rewards systems a source of conflict, How are differe...

How are different evaluation or rewards systems a source of conflict?

Determine the standard time, An 8 hours work measurement  study  in a plant...

An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. De

Explain ways you expect to use format design, Commercial and personal Websi...

Commercial and personal Websites, as well as print media, design their formats and include visuals for optimal audience appeal. Select a Website or print medium for this reflective

Design of products and services, the purpose of the design activity in comp...

the purpose of the design activity in companies is to come up with products/services which willsatisfy the needs of customers/clients. which one of the fololowing statements is inc

Describe potential for increased profit, Which of the following is a criter...

Which of the following is a criterion used for selecting a target segment? Potential for increased profit Similarity of needs of potential buyers within a segment Differen

Calculate sample mean & superimpose the frequency histogram, 1. (a) For the...

1. (a) For the measurement data presented below, draw a frequency histogram using a class width of 0.1 mm; calculate the sample means and superimpose their frequency histogram; com

Do you think that there is too much advertising out there, Do you believe t...

Do you believe that there is too much advertising out there? Do you think there should be a limit to advertising? Explain.

What are the advantages of the level capacity strategy, What are the advant...

What are the advantages of the Level capacity strategy? The advantages of the Level capacity strategy: a. Employment of operational resources at all times. b. Efficient p

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