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

Question 2, Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to ...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding among

How to find the optimal order quantity, Must use Excel for solution Zip ...

Must use Excel for solution Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processi

Determining operations strategy - traditional approaches, Determining Opera...

Determining Operations Strategy - Traditional and Emerging Approaches Three known and acknowledged procedures are presented here: the Hill, Platts and Gregory, and the Slack

Explain what does business intelligence mean to a business, What does busin...

What does business intelligence really mean to a business? What are the negative impacts of business intelligence? How does a database and data warehouse support business intellige

Explain ethical dilemma, Ethical Dilemma CRM: Targeting or Discriminating? ...

Ethical Dilemma CRM: Targeting or Discriminating? Are they ethical? Why or why not.

Explain at what rate have sales been growing, Shalit Corporation's 2008 sal...

Shalit Corporation's 2008 sales were $7 million. Its 2003 sales were $3.5 million. At what rate have sales been growing? Round your answer to the nearest hundredth.

Sequencing.., program to find optimal sequence, total elapsed time and tota...

program to find optimal sequence, total elapsed time and total idle time in 6 jobs and 3 machines

How to completed a swot analysis of the company, A team has just completed ...

A team has just completed a SWOT analysis of the company. Briefly state what this analysis should be used for in the context of strategy.

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