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- Module 5 Question 6 The owner of the Petreno Pharmaceutical Company is evaluating the expected annual sales for a new line of facial care products and estimates that there is a 60 percent chance that the product line will be extremely successful, in which case it will generate sales next year of 8.0 million. However, since the new product line has a unique appeal that will require substantial advertising by its manufacturer to gain consumer acceptance, there is a 40 percent chance that revenues for next year will be a modest 1.0 million. What is the expected level of revenues for the new product line? The expected total revenue for the new line of products is $ ___ millionQuestion #4 - Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry loves to take his own bike on 50-mile trips with his friends, but he believes that any small business should be started only if there is a good chance of making a profit. Jerry can open a small shop, a large shop, or no shop at all. The profits will depend on the size of the shop and whether the market is favorable or unfavorable for his products. Because there will be a 5-year lease on the building that Jerry is thinking about using, he wants to make sure that he makes the correct decision. Jerry is also thinking about hiring his old marketing professor to conduct a marketing research study. If the study is conducted, the study could be favorable (i.e., predicting a favorable market) or unfavorable (i.e., predicting an unfavorable market). Develop a decision tree for Jerry.Which of the following statements regarding "proximity" in the location decision is FALSE? Question 26Answer A. Reduction in bulk is a good reason for a manufacturer to locate near the plantation. B. Clustering among fast food chains occurs because they need to be near their labor supply. C. Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. D. Service organizations find that proximity to market is the most critical primary location factor. E. Manufacturers want to be near customers when their product is bulky, heavy, or fragile.
- Question 1. Hoverboards and the Factory Market Area: Suppose there is a single shoe factory in the region. The factory competes with homemade shoes and will sell shoes to any household for which the net price of factory shoes is less than the cost of homemade shoes. The cost of a homemade shoe is the opportunity cost of the time required to make the shoe at home, that is, the one gallon of milk that could be produced instead. Suppose the higher cost of living and commuting requires compensation of 0.80 gallons of milk per hour. Each worker produces 10 shoes per hour, so the average labor and capital cost are 0.18 gallons of milk and 0.12 gallons of milk respectively. The factory price of shoe (equal to the average production cost, sum of the average labor cost and the average capital cost) is 0.30 gallons of milk. A round-trip mile involves one mile of travel to a location and one mile back, for a total distance of two miles. Linear travel cost 20 miles /hour. Therefore, the…Question 3Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup itsdistribution centre.I. What is the main objective of using this technique? II. What information will be needed in order to use this technique? III. Setup a numerical example that can be used to demonstrate to the owner of thecompany how the technique can be used. IV. Use the numerical example set up above to demonstrate how the centre of gravitylocation technique is used.QUEStion 10 Suppose sales for the past 6 months have been81, 93, 117, 81, 91, and 100 What is the 4-month moving average for the 4th period? (please round your answer to 1 decimal place)
- QUESTION 16 International companies' choices of locations for their plants and other operations are influenced by the fact that members of trade groups are increasingly selling more to each other. True or False question28 Regarding cultural forces and their impact on standardization of global operations, which of the following is not true? a. Factories built in industrialized nations with large markets and high labor costs will typically favor capital-intensive processes. b. Factories built in developing countries that lack skilled workers may use specialized machines. c. General-purpose machines typically require more skilled operators than do specialized machines. d. Specialized machines typically require highly skilled persons to attend to their operation.Question 3 a) The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): From Warehouse To Market Supply A B C D 1 14 24 18 28 48 2 17 18 25 16 56 3 30 16 22 30 32 Demand 41 34 35 20 b) Draw a well annotated source destination chart illustrating the LP problem above c) Using systematic nomenclature for the variables, write out an LP formulation for the problem. Please explain how you arrive at the answer and show the different steps to answer themOp7. Question 4. Assume you are the marketing consultant for an upscale food market that wants to focus its marketing efforts on attracting new customers. You have a choice of segmenting the market on either a demographic or a benefit basis. What is the difference between the two? Which would you recommend, and why? Type your answer............. Question 5. Differentiate between breadth and depth of a firm's product mix by choosing a familiar company and explaining how its products exemplify these two concepts. Type your answer................
- Question 4 Yalelo is a manufacturing Zambian Company. You have been asked by the Board of Directors of this Mid-Sized Listed manufacturing Company at LuSE to update them on emerging corporate governance issues that should be of interest to them. Prepare a report for the Board on the ‘Corporate Governance’ issues that should be of current concern to the Directors of this Company.Question 1The Rotary Club is holding a pizza sale to finance outreach projects. The Club made an agreement to purchase pizza from Pizza Hut at a 30% discount which the Rotary Club can then resell for a profit. It is expected that of the 500 families in the community, at most 70% will buy pizza. Based on a survey of their personal preferences, the students believe that they should orderno more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. They also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. The standard price (before discount) for the cheese, pepperoni and vegetarian is $12, $15 and $14, respectively. The Rotary Club makes a profit of 10%, 15% and 20%, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. a) Formulate a linear programming model that would determine the optimal solution. An explanation for the derivation of EACH equation should…Question 1AA CEO of a multihospital system is planning to expand operations into various states. It will take several years toget certificate of need (CON) approvals so that the new facilities can be constructed. The eventual cost (in millionsof dollars) of building a facility will differ among states, depending upon finances, labor, and the economic andpolitical climate. An outside consulting firm estimated the costs for the new facilities as based on declining,similar, or improving economies, and the associated probabilities as shown in the Table below.Decisionalternatives Declining Same ImprovingKentucky 22.00 19.00 15.00Maryland 19.00 18.50 18.00North carolina 19.50 17.00 15.50Tennesee 23.00 17.00 14.00Virginia 25.00 21.00 13.00 (e) Using a minimax regret approach, what alternative should the firm choose? (f) Economists have assigned probabilities of 0.25, 0.40, and 0.35 to the possible economic climate ofdeclining, same and improving respectively. Using expected monetary values,…