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 total quality improvement has changed healthcare, Analyze how total...

Analyze how total quality improvement has changed healthcare delivery on both the macro and micro levels.

Illustrate performance dimensions for operational strategy, Illustrate the ...

Illustrate the performance dimensions for operational strategy? Performance dimensions for operational strategy: • Quality for illustrations Marks and Spencer, Thornton’s,

Explain the leadership characteristics, Provide two examples of current lea...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

Explain the sdlc contains seven phases, The SDLC contains seven phases, whi...

The SDLC contains seven phases, which phase transforms the design into an actual system

Compute a simple exponential smoothing forecast, The actual demand of the p...

The actual demand of the patients at Omaha Emergency Medical clinic for the first six weeks of the year are as follows: week Actual # of patients 1 65 2 62 3 70 4 48 5 63 6

Explain methods of quantitative analysis, Name four methods of quantitative...

Name four methods of quantitative analysis that are useful in informing the facility location decision. How can each of the methods assist you in location decisions? Provide exampl

Explain operations applications are least prominent, Operations application...

Operations applications are least prominent for distributors, wholesales, manufacturers or retailers?

Explain what is the best decision, Let's say you own a small construction c...

Let's say you own a small construction company. You need to decide whether to buy a bulldozer to add to your equipment fleet. You assume that the construction industry could be Goo

Describe what is the average time a car is in the system, Automobiles arriv...

Automobiles arrive at the drive-through window at the downtown Urbana, Illinois, post office at the rate of 4 every 10 minutes. The average service time is 2 minutes. The Poisson d

Explain how you would use situational leadership, Describe how you would us...

Describe how you would use Situational Leadership to diagnose the situation and identify the appropriate leadership style.?

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