2 The product design group of lyengar Electric Supplies, Inc, has determined that it needs to design a new series of switches. It must decide on oneof three design strategies The market forecast is for 250,000 units. The better and more sophisticated the design strategy and the more time spenton value engineering, the less will be the variable cost. The chief of engineering design, Dr WL Berry, has decided that the following costs are agood estimate of the initial and variable costs connected with each of the three strategies explained below. (Note that VC = Variable Cost)Option 3: High-techOption 1: Low-techProbability0.500.10Option 2: SubcontractProbabilityVCProbabilityVCVC$0.620.55$0.540 60$0.44$0 610.15$0 470 40$0.320.40$0.480.30$0 46Fixed Cost$45,000$55,000Fixed Cost$85,000Fixed CostWhat is the best decision based on an expected monetary value (EMV) critenon? (Note We want the lowest EMV, as we are dealing with costs inthis problem).O Low-techO subcontractO High-tech

Given - No. of units (forecast) = 250,000 units Fixed cost and Variable cost are given.

Answered: The product design group of lyengar…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Typed solution The product design group of Iyengar Electric Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The market forecast is for 200,000 units. The better and more sophisticated the design strategy and the more time spent on value engineering, the less will be the variable cost. The chief of engineering design, Dr. W. L. Berry, has decided that the following costs are a good estimate of the initial and variable costs connected with each of the three strategies explained below. Low-tech: a low-technology, low-cost process consisting of hiring several new junior engineers. This option has a fixed cost of $40,000 and variable-cost probabilities of 0.5 for $0.56, 0.1 for $0.47,and 0.4 for $0.41. Subcontract: a medium-cost approach using a good outside design staff. This approach would have a fixed cost of $75,000 and variable-cost probabilities of 0.7 of $0.49, 0.2 of $0.46, and…
Construct ER diagram for the following scenario. There is an online community to sharejokes. The community consists of an admin and a number of members. There are two types of members:regular/ad hoc members and contributors. A contributor actively writes jokes, while regular membersread jokes posted. A regular member can write a comment on a joke he/she read. The contributors canmake use of these comments for improvements. The contributors are registered and issued passwordsby the admin. They have to login to post jokes. The admin also manages the jokes posted, mainly toremove the old jokes when the space runs short.
True or False: Engineering Technologist study the design process because 85% of problem of new products are reported due to a poor design process. The basic elements of product design are Product function, Product form, and Material.
Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U.S. Department of Defense (DoD). Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truck-mounted. The DoD has asked LTI to submit a bid for 100 more units. The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit 6.4 and Exhibit 6.5. UNITNUMBER COST($ MILLIONS) UNITNUMBER COST($ MILLIONS) 1 $ 13.0 11 $ 2.2 2 7.5 12 2.1 3 5.8 13 1.9 4 4.5 14 1.9 5 4.0 15 1.7 6 3.5 16 1.7 7 3.1 17 1.5…
The product design group of ABC Supplies has determined that it needs to design a new series of electric switches. It must decide on one of three design strategies. The better and more sophisticated the design strategy and the more time spent on value engineering, the less will be the variable cost. The chief of engineering design, William Berry, has decided that the following costs are a good estimate of the initial and variable costs connected with each of three strategies: • Low-tech: a low technology, low cost process consisting of hiring several new junior engineers. This option has a fixed cost of $45,000 and variable cost of $0.52 each. • Subcontract: a medium-cost approach using a good outside design staff. This approach would have a fixed cost of $65,000 and variable cost of $0.45. • High-tech: a high technology approach using the very best of the inside staff and the latest computer-aided design (CAD) technology. This approach has a fixed cost of $85,000 and variable cost of…
Analyses and design may be compared using the following criteria: The difference between analyses and designs is that the former generates models, whilst the latter focuses on the final product.
How the goal of six sigma is realistic for the Vedio stores and dvd kiosks ?
Customers using the drive up window at fast food restau-rants are sometimes greeted by a message encouraging them to purchase an item that’s currently “on special.”Marketing researchers at one restaurant chain want to testthe effectiveness of such a message. They have selected 10 of their restaurants in various locations for an experi-ment, and are considering two different designs. Design I: 5 of the restaurants will use the messageand the other 5 will not.Design II: Each restaurant will alternate betweenplaying or not playing the message as customersarrive at the drive-thru order station.a) Describe a method of assigning the restaurants tothe groups for Design I using this list of randomdigits: 08530 08629 32279 29478 50228b) Which do you think is the better design? Explain why.c) For the design you chose in part b, describe the datayou would collect and the method of analysis youwould use to determine whether there is evidence thatthe message improves sales of the special item.
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Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $125 each. If the market is not good, he will sell only 300 at $90 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $70 each. In either case, production costs will be approximately $35,000. He can also choose to do nothing, if he believes there is a 50% probability of a good market, what should he do and why?

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