* 00Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems tobe growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickuptruck. The smaller truck would have better fuel economy, but would sacrifice capacity and somedurability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lowergas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices willstay roughly unchanged.Based on this information, Miles has developed a decision table that indicates the profit amount hewould end up with after a year for each combination of truck and gas prices.States of NatureLower gasGas pricesHigher gasAlternativespricesunchangedpricesSubcompact19,000000CompactOGOʻST000Full size000'9Probability0.30.50.2MacBook Air000000DDF708F4F56%24)9|K.D. * 00Compact0000Full size000'9Probability0.30.50.2Which type of truck should Miles select based on Maximum Likelihood Criterion?O CompactO Full sizeO NoneO SubcompactNext« PreviousMacBook Air110F8000000DDF2F3F4F5&2$5.9.R

Decision theory helps the managers to analyse the available alternatives and understand the logic…

Answered: * 00 Miles is considering buying a new…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
A Southern Georgia school district is consideringordering 53 propane-fueled school buses. “They’re healthier,they’re cleaner burning, and they’re much quieter than thediesel option,” said a school administrator. Propane-poweredbuses also reduce greenhouse gasses by 22% compared togasoline-powered buses and 6% compared to diesel ones. Butthey come at a premium—$103,000 for a propane model,$15,000 more than the diesel equivalent.The propane bus operating cost (above and beyond fuelcost) is 30 cents/mile, compared to 40 cents for the diesel.Diesel fuel costs about $2/gallon in Georgia, about $1 morethan propane. Bus mileage is 12 mpg for the propane modelvs. 10 mpg for diesel. The life of a school bus in the districtaverages 9 years, and each bus travels an average of 30,000miles per year because the district is so large and rural.Which bus is the better choice based on a life-cycleanalysis?
Basil's Framing manufactures picture frames in one workshop, which has a practical capacity of 40,000 frames. The variable cost of a frame is $24 per unit, and the fixed costs of the workshop are $392,000 annually. Current annual demand is 28,000 frames. Basil's Framing bought the current workshop because of forecasts that demand for the frames would grow. Required: a. What cost per frame should the cost system report to facilitate management decision making?
Aaron is a young entrepreneur. He saw a business opportunity in providing alternative electricity solutions. He started his business, Alt Energy, a year ago. He rents a small office and storage room, and he owns three vehicles. The office is used for administration. The storage room is used to store expensive equipment and stock. Aaron has employed an administration clerk and four technicians. Due to the increase in loadshedding, his business has grown rapidly. He has appointed a new manager and he wants to provide him with a report on what risk and risk management is. 1.Objectives 2 Risk identification 3 Risk evaluation 4 Risk control 5 Risk financing 6 Programme monitoring and administration
Aaron is a young entrepreneur. He saw a business opportunity in providing alternative electricity solutions. He started his business, Alt Energy, a year ago. He rents a small office and storage room, and he owns three vehicles. The office is used for administration. The storage room is used to store expensive equipment and stock. Aaron has employed an administration clerk and four technicians. Due to the increase in loadshedding, his business has grown rapidly. He has appointed a new manager and he wants to provide him with a report on what risk and risk management is. explain the risk management process by describing each stage and how it applies to Alt Energy. 1.Objectives Indicate the importance of setting objectives and apply it to Alt Energy. 2 Risk Identification
Aaron is a young entrepreneur. He saw a business opportunity in providing alternative electricity solutions. He started his business, Alt Energy, a year ago. He rents a small office and storage room, and he owns three vehicles. The office is used for administration. The storage room is used to store expensive equipment and stock. Aaron has employed an administration clerk and four technicians. Due to the increase in loadshedding, his business has grown rapidly. He has appointed a new manager and he wants to provide him with a report on what risk and risk management is. The report should follow the following format: 1. Introduction 2. Risk 2.1 Risk defined 2.2 Systemic and Systematic risks 3. Risk Management 3.1 Reasons why risk management would be important to Alt Energy 3.2 Researched example of another company that did not manage their risks 4. The risk management process 4.1 Objectives 4.2 Risk identification 4.3 Risk evaluation 4.4 Risk control 4.5 Risk financing 4.6…
Aaron is a young entrepreneur. He saw a business opportunity in providing alternative electricity solutions. He started his business, Alt Energy, a year ago. He rents a small office and storage room, and he owns three vehicles. The office is used for administration. The storage room is used to store expensive equipment and stock. Aaron has employed an administration clerk and four technicians. Due to the increase in loadshedding, his business has grown rapidly. He has appointed a new manager and he wants to provide him with a report on what risk and risk management. Provide a researched example of another South African company in the same industry that did not management their risk. This example should be comprehensive and confirm the importance of risk management. It is important that you draw similarities with Alt Energy and conclusions from your research.
(250 words) Determine the most appropriate stage of development in spiral dynamics for the optimal management of thepandemic in Sweden. Give concrete examples to justify your decision.
An all-you-can-eat buffet invites various types of customers. The ones whovalue food at $20 but eat only for $5 and the hungry ones who value the buffetat $40 and eat $20. If the restaurant gets 100 customers of each type a dayhow much revenue will the restaurant get? Show breakdown
The task I am struggling with: A manufacturing company producing medical devices reported $60 000 000 in sales over the last year. At the end of the same year the company had $ 20 000 000 worth of inventory of ready-to-ship devices.a) Assuming that units in inventory are valued (based on COGS) at $1000 per unit and are sold for $2000 per unit, how fast does the company turn its inventory? The company uses a 25% per year cost of inventory. That is for the hypothetical case that one unit of $1000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost.b) What in absolute terms is the per unit inventory cost for a product that costs $1000? Thank you very much for your help.
Sales for the last quarter of the year were good, with tops sales at 3,400 units and pants sales at 3,200 units. Demand for the first quarter sales of next year is expected to decline by 8%. What is your forecast for the demand of tops and pants? Tops Sales Forecast: 0 ▲ ▼ Pants Sales Forecast: 0 ▲ ▼ Is there anything you could do to help minimize the effect of the projected decline in demand on sales?

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