OPERTATIONS MGMT:SUSTAINABILITY
2nd Edition
ISBN: 9781323751718
Author: HEIZER
Publisher: PEARSON
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Question
Chapter 5, Problem 24P
a)
Summary Introduction
To determine: The best decision when Mr. T is assumed to possess the semiconductor.
Introduction: Expected monetary value (EMV) is a calculation system for expected returns for the certain decision made by a company.
b)
Summary Introduction
To determine: The criteria used in decision making.
c)
Summary Introduction
To determine: The worst and the best outcome to Mr. T as a result of the decision made.
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Ritz Products's materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce. One million units are expected to be produced over the life cycle. If the product is made, start-up and production costs of the make decision total $3 million, with a probability of
0.4 that the product will be satisfactory and a 0.6 probability that it will not. If the product is not satisfactory, the firm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether to spend another $3 million to redesign the semiconductor or to purchase. Likelihood of success the second time that the make decision is made is 0.8. If the second make decision also fails, the firm must purchase. Regardless of when the purchase takes place, Dhakar's best judgment of cost is that Ritz will pay $0.40 for each purchased semiconductor plus $2 million in vendor development cost.
Part 2
a) Assuming that…
Ritz Products's materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the firm is about to produce.
Three
million units are expected to be produced over the life cycle. If the product is made, start-up and production costs of the make decision total
$1
million, with a probability of
0.5
that the product will be satisfactory and a
0.5
probability that it will not. If the product is not satisfactory, the firm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether to spend another
$1
million to redesign the semiconductor or to purchase. Likelihood of success the second time that the make decision is made is
0.8.
If the second make decision also fails, the firm must purchase. Regardless of when the purchase takes place, Dhakar's best judgment of cost is that Ritz will pay
$0.40
for each purchased semiconductor plus
$2
million in vendor development cost.
a) Assuming that Ritz…
Ritz Products’s materials manager, Tej Dhakar, mustdetermine whether to make or buy a new semiconductor for thewrist TV that the firm is about to produce. One million unitsare expected to be produced over the life cycle. If the product ismade, start-up and production costs of the make decision total$1 million, with a probability of .4 that the product will be satisfactory and a .6 probability that it will not. If the product isnot satisfactory, the firm will have to reevaluate the decision. Ifthe decision is reevaluated, the choice will be whether to spendanother $1 million to redesign the semiconductor or to purchase.Likelihood of success the second time that the make decision ismade is .9. If the second make decision also fails, the firm mustpurchase. Regardless of when the purchase takes place, Dhakar’sbest judgment of cost is that Ritz will pay $.50 for each purchasedsemiconductor plus $1 million in vendor development cost.a) Assuming that Ritz must have the semiconductor (stopping…
Chapter 5 Solutions
OPERTATIONS MGMT:SUSTAINABILITY
Ch. 5.S - Prob. 1DQCh. 5.S - Prob. 2DQCh. 5.S - Prob. 3DQCh. 5.S - Discuss the 3 Rs.Ch. 5.S - Prob. 5DQCh. 5.S - Prob. 6DQCh. 5.S - Prob. 7DQCh. 5.S - Prob. 1PCh. 5.S - Prob. 2PCh. 5.S - Prob. 3P
Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - Prob. 6PCh. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - Prob. 10PCh. 5.S - A Southern Georgia school district is considering...Ch. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Prob. 15PCh. 5.S - Prob. 16PCh. 5.S - Prob. 17PCh. 5.S - Prob. 18PCh. 5.S - Prob. 19PCh. 5.S - Prob. 1.1VCCh. 5.S - Prob. 1.2VCCh. 5.S - Prob. 1.3VCCh. 5.S - Prob. 2.1VCCh. 5.S - Prob. 2.2VCCh. 5.S - Prob. 2.3VCCh. 5 - Prob. 1EDCh. 5 - Prob. 1DQCh. 5 - What techniques do we use to define a product? ...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Describe four organizational approaches to product...Ch. 5 - Explain what is meant by robust design.Ch. 5 - Prob. 9DQCh. 5 - What information is contained in a bill of...Ch. 5 - What information is contained in an engineering...Ch. 5 - What information is contained in an assembly...Ch. 5 - Prob. 13DQCh. 5 - Explain how the house of quality translates...Ch. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Why are the direct interaction and surrogate...Ch. 5 - Prob. 18DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Construct a house of quality matrix for a...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prepare a bill of material for (a) a pair of...Ch. 5 - Prob. 10PCh. 5 - Prepare a script for telephone callers at the...Ch. 5 - Prob. 12PCh. 5 - Prob. 18PCh. 5 - Review strategic process positioning options for...Ch. 5 - Select a service business that involves...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Residents of Mill River have fond memories of ice...Ch. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 1CSCh. 5 - Prob. 2CSCh. 5 - Prob. 3CSCh. 5 - Prob. 1VCCh. 5 - Prob. 2VCCh. 5 - Prob. 3VCCh. 5 - Prob. 4VC
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