SCMG502 Week 2 Discussion

Given the decision tree below, determine which alternative should be purchase given the probability of poor and good economic conditions. Explain your answer.

What is the best of the worst decision alternative? DİHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000 Hire Additional Drivers in Mandaue Construct a Facility in Talisay O Subcontracting Ohlala Move Both Construct a Facility in Talisay and Subcontracting Ohlala…

I want to answer to solve ㅠㅠㅠㅠ.   Q1. A builder has located a piece of property that she would like to but and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities Cost of land $2 MillionProbability of rezoning .6If the land is rezoned, there will be additional costs for new roads, lighting, and so on of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70% chance that she can sell the shopping center to a large department store chin for $4 million over her construction cost, which excludes the land; and there is a 30% chance that she can…

JayZee Electronics wanted to expand its operations by considering of putting up another warehouse to store their electronic supplies from different suppliers. The table below shows the payoff for all alternatives available for JayZee Electronics in all 3 states of nature. The probabilities for every state of nature is also provided. Size of the Warehouse Good Market ($) Fair Market ($) Poor Market ($) Small 40,000 -10,000 -20,000 18,000 Medium 80,000 90,000 Large Very Large -40,000 -160,000 100,000 175,000 350,000 25,000 Probabilities 0.35 0.45 0.20 Using Decision Making under Uncertainty (Use Sheet 1 and rename it to Lastname_Uncertainty) (a) Develop a decision table for this decision. (b) What is the maximax decision? (c) What is the maximin decision? (d) What is the equally likely decision? (e) What is the criterion of realism decision? Use an a value of 0.8. (f) Develop an opportunity loss table. (g) What is the minimax regret decision? Using Decision Making under Risk (Use Sheet 1…

Please show all work and explain answer. OneRing Company sells memorabilia to residents of Middle-Earth. They are about to invest $6 million in a new ring making plant.   Fixed costs of operating the plant are $1 million a year. The ring costs $60/unit to manufacture (variable cost) and will be sold for $200/unit. The plant will last for 5 years, and will be depreciated over 5 years to zero using the straight-line method. The plant will have no salvage value after five years.   Net working capital requirements are negligible for this project. Assume there are no taxes in Middle-Earth, and that the appropriate discount rate for the project is ten percent.   How many rings per year must OneRing sell in order to break even?

for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands) depends on demand as follows.      DEMAND STAFFING OPTIONS HIGH MEDIUM LOW Own Staff 650 650 600 Outside Vendor 900 600 300 Combination 800 650 500 Based on decision analysis under uncertainty, determine the best decision each of the model. Then compare all the model decision to make it overall conclusion.

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You work for a cell phone company that is experiencing an outage in a specific area of town. A customer calls in to complain. She has a sick mother and needs her phone to work so that she can contact emergency services. When you ask her what solution she is looking for, she replies that she needs her phone to work right now and she wants your company to pay for her service for the next year.          How would you express empathy with this customer?       While the scenario appears unsolvable, what alternatives could you offer to help this difficult to please customer?        What would you do if the customer demands to speak to the CEO of your company?

What is the best decision alternative under Maximax criterion? (Provide complete decision table solution) DIHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small- time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000 Hire Additional Drivers in Mandaue Construct a Facility in Talisay O Subcontracting Ohlala Move Both…

You are the manager of GearNet and must decide how many Internet hubs to produce to maximize your firm’s profit. GearNet and its only rival (NetWorks) sell dual-speed Internet hubs that are identical from consumers’ perspectives. The market price for hubs depends on the total quantity produced by the two firms. A survey reveals that the market price of the hubs depends on total market output as follows: Combined Hub Production of GearNet and NetWorks Market Price of Hubs (per unit) 500 units $120 750 units $100 1,000 units $90 GearNet and NetWorks each use labor, materials, and machines to produce output. GearNet purchases labor and materials on an as-needed basis; its machines were purchased three years ago and are being depreciated according to the straight-line method. GearNet’s accounting department has provided the following data about its unit production costs:   Item GearNet’s Unit Cost for an Output of:                      250 units…

You assisted your Unit Head in preparing the EFE. In the rating, your Unit Head asked you to rate opportunity numbers 3,5,7,9 and threats numbers 5,8,9 and 4. Rating these items at 4 would mean that the company has ________ to address opportunities and respond to threats.

A recently concluded Kaggle competition had a prize of $60,000 and was about predicting customer satisfaction: Santander Customer Satisfaction Links to an external site.. Download the training and test sets from the Kaggle site and train and validate a decision tree classification model from the Scikit-learn machine learning library. The training and test sets are also provided here - "Santander Customer Satisfaction- TRAIN.csv Download Santander Customer Satisfaction - TRAIN.csv" and "Santander Customer Satisfaction- TEST-Without TARGET.csv"

Exercise 4: Ethics in Decision Making Assume that you are the chairman of the Department of Accountancy at Mountain State University. One of the accounting professors in your department, Dr. Cruz, has been consistently and uniformly regarded by students as an awful teacher for more than 10 years. Other accounting professors within your department have observed Dr. Cruz's classroom teacher and they concur that his teaching skills are very poor. However, Dr. Cruz was granted tenure 12 years ago, thereby ensuring him life-long job security at Mountain State University. Much to your surprise, today you received a phone call from an accounting professor at University of Eastern Philippines. During this phone call you are informed that the University is on the verge of making a job offer to Dr. Cruz. However, before extending the job offer, the faculty at the University wants your input regarding Dr. Cruz's teaching effectiveness while at Mountain State University. Required: How would you…

Phillip Witt, president of Witt Input Devices, wishesto create a portfolio of local suppliers for his new line of keyboards.As the suppliers all reside in a location prone to hurricanes,tornadoes, flooding, and earthquakes, Phillip believes thatthe probability in any year of a " super-event" that might shutdown all suppliers at the same time for at least 2 weeks is 3%.Such a total shutdown would cost the company approximately$400,000. He estimates the " unique-event" risk for any of thesuppliers to be 5%. Assuming that the marginal cost of managingan additional supplier is $15,000 per year, how many suppliersshould Witt Input Devices use? Assume that up to three nearlyidentical local suppliers are available.

The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company’s cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base with which the cost might be closely correlated. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information:     Quarter TonsMined DirectLabor-Hours   UtilitiesCost   Year 1:             First 25,000     6,000     $ 60,000         Second 17,000     4,000     $ 55,000         Third 30,000     5,000     $ 70,000         Fourth 22,000     7,000     $ 85,000       Year 2:             First 28,000     11,800     $ 118,000         Second 35,000     10,800     $ 123,000         Third 40,000     9,800     $ 95,000…

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Phillip​ Witt, president of Witt Input​ Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to​ hurricanes, tornadoes,​ flooding, and​ earthquakes, Phillip believes that the probability in any year of a​ "super-event" that might shut down all suppliers at the same time at least 2 weeks is 3​%. Such a total shutdown would cost the company approximately ​$480,000. He estimates the​ "unique-event" risk for any of the suppliers to be 5​%. Assuming that the marginal cost of managing an additional supplier is ​$16,000 per​ year, how many suppliers should Witt Input Devices​ use? Assume that up to three nearly identical local suppliers are available. Find the EMV for alternatives using​ 1, 2, or 3 suppliers.     ​EMV(1)=​$54,40054,400 ​(Enter your response rounded to the nearest whole​ number.) ​EMV(2)=​ ? $ ​(Enter your response rounded to the nearest whole​ number.) ​EMV(3)=​ ? $ ​(Enter your response…

Very Favorable Average Market Unfavorable Alternatives Market Market Build new plant $250,000 $180.000 - S200,000 Subcontract $270.000 $185,000 - $220,000 Overtime S100.000 $50,000 - $12.000 Do Nothing SO SO $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).

Decision Making Under Uncertainty In the Table, we apply the concept of Maximax choice, the Maxmin choice, and the equally likely choice. Given the data/information in the Table, compute for the row average. After that, determine the amount of the ROW AVERAGE that would be adopted to be best alternative. The best alternative is the alternative with the highest value of the row average. In this case, which option is more attractive? Values in PhP State of Nature Favorable Unfavorable Maximum Market Minimum in Row Alternatives Market in Row Row Average Project A 80,000.00 20,000.00 80,000.00 20,000.00 Project B 40,000.00 25,000.00 40,000.00 25,000.00 Project C 30,000.00 10,000.00 30,000.00 10,000.00 Project D (Do Nothing)

Determining Margin Potential Finding the maximum amount of profit you can generate from one unit of a product is called Margin Potential. This is useful for a company when making a decision about whether to go into production or not. In its simplest form, you can calculate Margin Potential as: Margin Potential = Maximum Price - Minimum Unit Costs Price Use the information table below to find the maximum price that customers deem acceptable. You can find this in the Customer Buying Criteria for each segment. Minimum Material Cost Calculate the minimum Material Cost per segment using the following equation and table below: Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Material Cost Minimum Labor Cost Calculate the minimum Labor Cost for each segment. Assume a base labor cost of $11.20 ($11.20 is a rough estimate of labor cost used solely to illustrate the Margin Potential Concept). Minimum Labor Cost = [$11.20 - (1.12 * Automation Ratings Below)] + 1.12…

Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Demand Volume Decision Low Medium High Basic model $85,000 $115,000 $180,000 Advanced model $50,000 $115,000 $190,000 Fill in the table below for maximum and minimum profit payoffs under each model. Round your answers to the nearest dollar. Decision alternative Maximum Minimum Basic model $ $ Advanced model $ $ Calculate the amounts foregone by not adopting the optimal course of action for each possible demand level. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer is zero, enter "0". Round your answers to the nearest dollar. Opportunity Loss Matrix Future events Decision alternative Low Medium High Maximum Basic model $ $ $ $ Advanced model $ $ $ $ Given the…

Given the following conditional value table: States of Nature Very Favorable Average Unfavorable Alternatives Market Market Market Build new plant $250,000 $270,000 $180,000 $185,000 $50,000 $0 - $200,000 - $220,000 Subcontract $100,000 $0 Overtime - $12,000 Do Nothing $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is $ b) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be The value of the return under this decision is $ (enter your answer as a whole number).

Your answer is partially correct. An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,200 and it will cost $1,300 per year to operate at the end of year that follows. She will keep the vehicle for 5 years; at the end of this period, the upgraded vehicle will have a salvage value of $3,800. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,900 per year to lease and operate the vehicle. The independent contractor's MARR is 11%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. 1943.56 EUAC(keep): $…

The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost:   Total fixed cost                                           $ 100,000   Average Variable Cost ​​​   $ 20   Selling Price ​​​​   $ 30     d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.

Pls help ASAP for both

A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand, an average market demand or low market demand. The following table summarizes the company's decision situation (profits in thousands of dollars). Alternative 00 540 300 240 O 100 30% High Dem. 1,000 Expand Facilities Acquire Competitor Subcontract Production What is the Expected Value of Perfect Information for the small parts manufacturer? 800 Ave. Dem. 200 600 -300 30% 100 Low Dem. -1,000 -400 0

Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. He has a total of 3 suppliers available. Philip believes that the probability of a super-event that might shut down all suppliers at the same time to be 3.0%. Such a shutdown would cost company 5 million dollars. He estimates the unique event risk for any supplier to be 5.0 %. Assuming that managing an additional supplier is 1 thousand dollars, how many suppliers should Philip use? Assume that suppliers are identical. (Only enter a number without any units.

Hayworth Corporation has Just segmented last year's income statement into its ten product lines. The chief executive officer (CEO) is curlous as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole? Multiple Choice the product line's sales dollars the product line's contribution margin the product line's segment margin the product line's segment mergin minus an allocated portion of common fixed expenses

Leah​ Johnson, director of Urgent Care of​ Brookline, wants to increase capacity to provide​ low-cost flu shots but must decide whether to do so by hiring another​ full-time nurse or by using​ part-time nurses. The table below shows the expected costs of the two options for three possible demand​ levels:                                                                                   States of Nature​ (demand) Alternatives Low Medium High Hire full−time $320 $480 $700 Hire part−time $0 $340 $800 Probabilities 0.20 0.55 0.25 Part 2 ​a) The alternative with the least expected cost is ▼   a. Hire full-time b. Hire part-time The expected price of this alternative is ​$_______  ​(enter your answer as a whole​ number). Part 4 ​b) The appropriate decision tree for Leah Johnson is presented in Figure____?

Suppose you are a manager in some leading firm / organization. The owner of the firm wants you to uplift the profit of the firm by introducing some new commodity in the market. Explain all decision making process relating to successfully introducing your commodity in the market.