hat is the effective monthly retention rate for customers who subscribe when buying their vehicle? % What is the effective monthly retention rate for customers who subscribe later? % What is the effective discount rate per month? %

hat is the effective monthly retention rate for customers who subscribe when buying their vehicle? % What is the effective monthly retention rate for customers who subscribe later? % What is the effective discount rate per month? %

Name: An automobile manufacturer offers a vehicle health monitoring (VHM) se
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: An automobile manufacturer offers a vehicle health monitoring (VHM) service for its vehicles. The VHM service is offered at a monthly price of $5.99 with a contribution margin of 75%. For customers who buy a subscription to the VHM service when purch

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...

See similar textbooks

Similar questions

At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.
Answer the given problem using the Customer Lifetime Value ( CLV) formula. Explain your answer The average sale for the boutique clothing retailer, Bellissi, is 50, and the average customer shops with them three times per year for two years. What is the lifetime value of this customer? After calculating the cost of goods sold ( COGS), overhead, marketing, and all other administrative expenses, Bellissi's profit margin is 20%.
Payoff Insurance Company charges a customeraccording to his or her accident history. A customer whohas had no accident during the last two years is charged a$100 annual premium. Any customer who has had anaccident during each of the last two years is charged a $400annual premium. A customer who has had an accident duringonly one of the last two years is charged an annual premiumof $300. A customer who has had an accident during the lastyear has a 10% chance of having an accident during thecurrent year. If a customer has not had an accident duringthe last year, there is only a 3% chance that he or she willhave an accident during the current year. During a givenyear, what is the average premium paid by a Payoffcustomer?
“As soon as the customer places an Order, it is received by the Sales department and a Sales Order is created. The Sales Order is sent to the Finance Department to check if the customer has any outstanding balance for more than 60 days. The AR Clerk at the Finance Department checks and sends the results back to the Sales Department. If there is an outstanding balance for more than 60 days, the Sales Department puts the Order on hold and notifies the customer. Otherwise, the Order Entry Clerk creates an Order Confirmation and sends it to the customer. Simultaneously a Picking List is generated and sent to the Order Fulfilment Department who picks up the next set of process steps. The Order Fulfilment Department receives the Picking List and determines which Warehouse is closest to the Customer location. The Picking List is sent to that Warehouse location. There, the items from the Picking List are picked. An Invoice is generated and printed. The items are packed along with the printed…
Termination from a job is an unpleasant experience which most employees have to go through at some point during their professional career. Getting terminated from the job may have psychological, professional and financial consequences on the employees. Suppose as an MBA student, you decide to investigate the experience of termination from job of employees working in the banking sector as part of your thesis research. Plan a qualitative study to investigate banking sector employee’s experience of termination from job by answering the following questions: Qno1(b) (What qualitative research approach/type would you choose to conduct this study? Provide reasons for your choice.
Best Buy is the largest consumer electronics retailer in the USA, with 2015 sales of over $50 billion. The company competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and target, but it is also known by consumers for its first-rate customer service. Best Buy consumers have commented that the retailer' sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features that are valued by many customers. How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A Differentiation strategy? A best-cost strategy? Explain your answer.
“Kitchen Helpers” is a kitchen appliance store that sells new appliances such as fridges, stoves, dishwashers, and ovens. They have been fairly successful because they carry products at a range of prices from simple affordable units to more expensive, higher end appliances. This is not a large company that sells huge volumes of appliances. “Kitchen Helpers” is a small company that focuses on providing exceptional customer service and people often recommend the company to their friends. The new appliances come from their supplier, a central warehouse. For example, “Kitchen Helpers” will purchase a new fridge for $1,200 and then mark up the product to $2,000. Recently, with COVID-19, “Kitchen Helpers” is seeing a shift in their business. People are waiting to buy new appliances due to economic uncertainty, so they are holding off on moving from their current home or doing renovations. In addition, the warehouse is finding it difficult to supply “Kitchen Helpers” with new fridges due to…
Scaffold Equipment manufactures and sells scaffolds and ladders that are used by construction firms. The products are sold directly to independent retailers in the United States. The company's risk manager knows that the company could be sued if a scaffold or ladder is defective, and someone is injured. Because the cost of products liability insurance has increased, the risk manager is considering other techniques to treat the company's loss exposures.a. Describe the steps in the risk management process.b. For each of the following risk management techniques, describe a specific action using that technique that may be helpful in dealing with the company's products liability exposure.1. Avoidance2. Loss prevention3. Loss reduction4. Noninsurance transfers
The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 35 percent of its business on Friday night, 30 percent on Saturday night, and 20 percent on Thursday night. What seasonal relatives would describe this situation?
Paul is the owner of a sport store that specialises in extreme sports such as paragliding and wakeboarding. To entice customers to spend more he has recently launched store credit, subject to approval. Which one of the following is a cost of granting credit that Paul must be aware of? Select one: a. Loss of interest b. Insurance cost c. The loss of customer goodwill d. Loss of flexibility
A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $85,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $70,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and it has a 40% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10-year mark. If both options are acceptable to the swim club, which one minimizes cost? Support your answer with drawing a decision tree and provide your calculation.
In the e-government audit approach; the outcome assessment area deals with the performance of the e-government service provision and the fulfilment of supply-driven and demand-driven success factors. Select one: a. True b. False