a) What is the optimal solution and the total profit contribution (in $)? DRB DRW total profit contribution III
Q: Why do risk analysts choose intervals of chance and consequence over precise numbers
A: A confidence interval, in measure, refers to the probability that a population boundary will fall…
Q: Which one of these statements is true? Solutions for managing the supply chain tend to look outward,…
A: Supply chain management is related to managing supply chain activities more effectively and…
Q: ore Nowadays it is very important to reduce one's carbon footprint" (how much carbon we produce in…
A: Ans) Formula for calculating monthly IRR: Formula for calculating annual effective IRR:
Q: The EastCoasters Bicycle Shop operates 364 days a year, closing only on Christmas Day. The shop pays…
A: Given: Purchase cost (P) = 300 Holding cost (H) = 25% of 300 = 75 Ordering cost (S) = 250 Weekly…
Q: Explain the importance of a fishbone diagram and How to utilize a fishbone diagram?
A: A fishbone diagram, also known as an Ishikawa diagram or cause-and-effect diagram, is a tool used to…
Q: Consider the following set of constraints: x1 + 2x2 + 2x3 + 4x4 2x1x2 + x3 + 2x4 4x12x2 + x3 x4 x1,…
A: Given LP- Min Z = 5x1- 4x2+6x3-8x4Subject to-x1+2x2+ 2x3+4x4≤402x1-x2+x3+2x4≤ 84x1- 2x2+x3-x4≤10…
Q: Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an…
A: Find the Calculation methods below:
Q: Planners for a company that makes several models of skateboards are about to prepare the aggregate…
A: Following are the various costs given, Cost Information:Regular time = $2 per skateboardOvertime =…
Q: onald Duck is trying to decide whether he should purchase a small, medium, or large new bus for the…
A: Ans) Probability of variable demands are given. Expected Annual Profit = Sum(Probability* Annual…
Q: Assume that as the newly appointed warehouse manager of Garden-William Logistics, you have decided…
A: A logistics company, which is a business that is responsible for the management of the movement of…
Q: a project manager.
A: A project refers to an undertaking for creating a product. Depending on the level of strcutures, a…
Q: Suppose the production manager is asked to reduce the safety stock of this item by 60 percent. If…
A: In inventory management, the term "safety stock" refers to the additional inventory that a business…
Q: Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a…
A: Formulae used: Total cost = (Annual Fixed cost + Unit variable cost) * No of units Given:…
Q: Given the following data, use least-squares regression to derive a trend equation: 1 3 Period Demand…
A: Given data- Period Demand 1 8 2 9 3 7 4 8 5 9 6 13
Q: 2. In the Figure below, explain briefly why does the vessel of average size takes an ADVANCE first…
A: Advance in shipping a vessel can be explained as the distance gone by transport along a unique…
Q: 8. ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s)…
A: Given-
Q: The Friendly Greetings greeting card company outsources printing to a nearby printing shop, which…
A: Given: Ordering cost (S) = 1200 Cost (C) = 0.30 Holding cost (H) = 0.05 Annual demand (D) = 25000
Q: Discuss project finance considerations. Project management software may minimize project costs
A: The query above has to do with project finance concerns and how project management software could be…
Q: Larry’s Bakery operates a chain of ten high-end bakeries. Larry, the owner of these amazing…
A: In order to represent decision-making when faced with many risks in events and their potential…
Q: Question 3 of 19 The following table contains information concerning four jobs that are awaiting…
A: In the job sequencing under EDD (Earliest Due Date) process, the job sequence is developed according…
Q: A company has a demand for 25,750 units annually. The holding cost is 33% of the item cost which is…
A: Given- Annual Demand (D) = 25,750 unitsOrdering cost (S) = $ 250Cost of each item (C) = $ 10Annual…
Q: What distinguishes project management from software project management?
A: In order to reach certain goals and objectives, a project must be planned, carried out, and…
Q: Assume that a company provided the following information and assumptions from its master budget:…
A: Given- Unit sales in June = 20,000 unitsUnit sales in July = 18,000 unitsUnit sales in August =…
Q: A pencil supplier has just introduced quantity discounts. The price schedule follows. Order Quantity…
A: EOQ = sqrt(2*D*S/H) D = demand S = ordering/setup cost H = holding cost Annual holding cost = EOQ/2…
Q: How might a company make strategic use of countertrade schemes as a marketing weapon to generate…
A: Countertrade schemes involve exchange of goods or services between countries, where payment is made…
Q: Using exponential smoothing, the forecasted demand for period 5 using the smoothing constant…
A: Exponential smoothing is a popular method of time series forecasting that uses a weighted average of…
Q: The Friendly Greetings greeting card company outsources printing to a nearby printing shop, which…
A: Reorder Point (ROP) indicating the stock level that triggers the new ordering process. Basically the…
Q: A builder has located a piece of property that she would like to buy and eventually build on. The…
A: Decision Tree:
Q: How are project management and software development distinct fields of study?
A: Project management and software development are distinct fields of study with different focuses and…
Q: Organizations can gain a competitive advantage simply by selling products and services at a lower…
A: A corporation has a competitive edge if it can make or provide its products or services more…
Q: Most enterprise resource planning (ERP) solutions conform to industry standards. Whose standards,…
A: The query relates to enterprise resource planning (ERP) solutions and the criteria that must be…
Q: plier 2 paper 2 3 tape 1 1 binder 4 3 memo pads 3 3 pens 1 2 a)Use matrix multiplication to get a…
A: (a) Let: Paper Tape Binders Pads Pens…
Q: When is it required to log an error in a process?
A: Logging an error is necessary when an unanticipated or abnormal event occurs during a process. It…
Q: IBM Sametime is IBM’s telepresence and collaboration environment. Formerly known as Lotus Sametime,…
A: IBM Sametime is a telepresence and collaboration platform that provides a range of real-time social…
Q: ents for better performance of your chosen organization’s supply chain: facilities, inventory,…
A: Certain supply chain drivers are accountable for the performance of a supply chain. To assess supply…
Q: Sales of tablet computers at Ted Glickman's electronics store in Washington, D.C., over the past 10…
A: Formulae used: Exponential smoothing Forecast formula: F(t+1)= Ft+α*(At-Ft) Where,α = Smoothing…
Q: find the a. decision variables b. objective function c. constraints
A: Transshipment is a special case of transportation problem of linear program. In such problems there…
Q: A particular forecasting model was used to forecast a six-month perio April May June July August…
A: The tracking signal is used to determine if there is biasness in the forecast or not.
Q: Question 3 If each task has a work time of one minute and there are 8 hours in a day, what is the…
A: Given: Available production time= 8 hoursDesired output = 240 unitsTask worktime = 1 minute
Q: dy used 3 of his money to buy 6 markers. He used the rest of his money to buy 2 markers ncils. What…
A: If he used 2/3 of his money to buy 6 markers, then the cost of each marker is 1/6 of 2/3 of his…
Q: 1. In your own words explain thoroughly (not words from Google), what is the Importance of Ship…
A: Ship Handling and Maneuvering is characterized as the art of legitimate control of a ship while in…
Q: of these units must be processed by Macon Controls produces three different types of control units…
A: Meanwhile, the plant functions for two 8 hrs each week, 5 days/ week & 52 weeks yr. Therefore…
Q: Another way to look at the concept of inventory turnover is by measuring sales per square foot.…
A: Formulas used: Average sales per sq. foot =Average inventory at retailSquare feetAnnual sales per…
Q: A vendor for the local ballpark food stand is questioning whether to stock his concession with a…
A: Find the Given details below: Given details: Profit Alternative Large Crowd Average Crowd…
Q: Craft a high-level Procurement Management Plan for the project.
A: A Procurement Management Plan is an important document that outlines the procurement requirements…
Q: What is the equation of the trend line and the predicted sales for week 6?
A: Here, for each week, I have been given the unit sales data, I would determine the equation of the…
Q: Chapter 5: Food Goblin Supermarkets use both cashiers and baggers to serve customers at check out.…
A: Capacity refers to the highest level of production that can be achieved while taking all relevant…
Q: Kevin is an auto mechanic. He spends 3 hours when he replaces the shocks on a car and 2 hours when…
A: let shock = x1 and brake = x2 max z =400 x1 + 200x2 subject to 3x1 + 2x2 <= 36 x1 >=2 x2>=6…
Q: Integrated Health was a large private, nonprofit health care system located in Tempe,Arizona. A year…
A: Introduction- The change management issues engaged with Coordinated Wellbeing's execution of an…
Q: What are your three traffic-reduction strategies? What differentiates quality?
A: Some common traffic-reduction strategies that have been used by individuals and organizations:…
Step by step
Solved in 3 steps with 3 images
- The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.Suppose that GLC earns a 2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLCs cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five yearsduring year 6, year 11, and so on. For simplicity, we assume that Hundo is GLCs only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?