OPERATIONS AND SUPPLY CHAIN MANAGEMENT
9th Edition
ISBN: 9781119448037
Author: Russell
Publisher: WILEY
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Chapter 1.S, Problem 40P
Summary Introduction
To draw: The decision of M whether to sue the manufacturer or not.
Introduction: Decision analysis can be interpreted as the most common technique to make a decision in the situation when there is uncertainty. It uses quantitative measures to analyze the decision that is also used in operation of the firms.
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Mary Khadir is suing the manufacturer of her car because of a defect that she believes caused her to have an accident, keeping her out of work for a year. She is suing the company for $3.5 million. The company has offered her a settlement of $700,000, of which Mary would receive $600,000 after lawyers’ fees. Her lawyer has advised her that she has a 50% chance of winning her case. If she loses, she will incur lawyers’ fees and court costs of $75,000. If she wins, she is not guaranteed her full requested settlement. Her lawyer believes that there is a 50% chance she could receive the full settlement, in which case Mary would get $2 million after her lawyer takes his cut and a 50% chance that the jury will award her a lesser amount of $1 million, of which Mary would get $500,000. Using decision-tree analysis, decide if Mary should sue the manufacturer. What is the Expected Value of Mary winning the lawsuit? What is the Expected Value of Mary winning the lawsuit? What is Marys lawyers…
Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect
that he believes caused him to have an accident. The accident kept him out of work
for a year. The company has offered him a settlement of $700,000, of which Jay would
receive $600,000 after attorneys’ fees. His attorney has advised him that he has a
50% chance of winning his case. If he loses, he will incur attorneys’ fees and court
costs of $75,000. If he wins, he is not guaranteed his full requested settlement. His
attorney believes that there is a 50% chance he could receive the full settlement, in
which case Jay would realize $2 million after his attorney takes her cut, and a 50%
chance that the jury will award him a lesser amount of $1 million, of which Jay would
get $500,000. Using decision tree analysis, decide whether Jay should proceed with
his lawsuit against the manufacturer.
Mary Decker is suing the manufacturer of her car becauseof a defect that she believes caused her to have an accident,
and kept her out of work for a year. She is suing the com-pany for $3.5 million. The company has offered her a set-tlement of $700,000, of which Mary would receive
$600,000 after attorneys’ fees. Her attorney has advisedher that she has a 50% chance of winning her case. If sheloses she will incur attorneys’ fees and court costs of
$75,000. If she wins she is not guaranteed her full re-quested settlement. Her attorney believes that there is a
50% chance she could receive the full settlement, in whichcase Mary would get $2 million after her attorney takes hiscut, and a 50% chance that the jury will award her a lesseramount of $1,000,000, of which Mary would get $500,000.Using decision-tree analysis, decide if Mary should suethe manufacturer.
Chapter 1 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Ch. 1.S - Prob. 1PCh. 1.S - Prob. 2PCh. 1.S - Prob. 3PCh. 1.S - Prob. 4PCh. 1.S - Prob. 5PCh. 1.S - In Problem S1-5 assume that Nicole, with the help...Ch. 1.S - Prob. 7PCh. 1.S - Prob. 8PCh. 1.S - Telecomp, a computer manufacturer with a global...Ch. 1.S - Prob. 10P
Ch. 1.S - Prob. 11PCh. 1.S - Prob. 12PCh. 1.S - Prob. 13PCh. 1.S - Prob. 14PCh. 1.S - Prob. 15PCh. 1.S - Prob. 16PCh. 1.S - Prob. 17PCh. 1.S - Prob. 18PCh. 1.S - In Problem S1-18, assume the Weight Club is able...Ch. 1.S - Prob. 20PCh. 1.S - Prob. 21PCh. 1.S - Prob. 22PCh. 1.S - Prob. 23PCh. 1.S - Prob. 24PCh. 1.S - Prob. 25PCh. 1.S - Prob. 26PCh. 1.S - Prob. 27PCh. 1.S - Prob. 28PCh. 1.S - Prob. 29PCh. 1.S - Prob. 30PCh. 1.S - Prob. 31PCh. 1.S - Prob. 33PCh. 1.S - Prob. 34PCh. 1.S - Alex Mason has a wide-curving, uphill driveway...Ch. 1.S - Prob. 36PCh. 1.S - Prob. 39PCh. 1.S - Prob. 40PCh. 1.S - State University has three healthcare plans for...Ch. 1.S - The Orchard Wine Company purchases grapes from one...Ch. 1.S - Prob. 43PCh. 1.S - Prob. 1.1CPCh. 1.S - Prob. 2.1CPCh. 1.S - Evaluating Projects at Nexcom Systems Nexcom...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Feeding America Each year, the Feeding America...Ch. 1 - Prob. 1QCh. 1 - What constitutes operations at (a) a bank, (b) a...Ch. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Prob. 17QCh. 1 - What is the difference between an order winner and...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - Prob. 23QCh. 1 - Prob. 24QCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Omar Industries maintains production facilities in...Ch. 1 - Rushing yardage for three Heisman Trophy...Ch. 1 - Carpet City recorded the following data on carpet...Ch. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 1.1CPCh. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Prob. 1.5CPCh. 1 - Prob. 2.1CPCh. 1 - Prob. 2.2CP
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