Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 5.S, Problem 11P
Summary Introduction
To determine: The course of action that has highest expected value for this decision tree
Introduction: Decision tree is one of the methods of decision-making process. It would graphically represent the available alternatives and states of nature. It would also mention the payoffs and probabilities of the alternatives. It helps to choose the best alternative that would give best result among the alternatives.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A life cycle model specifies the criteria for entering and exiting each phase. When may a phase begin?
Please draw the critical path daigram of given
a) For an upcoming red carpet evening, a company is selling tickets at $60 per person at a large theatre which has a capacity of 10,000 people. Each attendant is expected to buy $12 of food and merchandise at the film evening. The cost of providing the food and merchandise is estimated to be $5 per person. All other ancillary services will be provided by the theatre. Initial analysis indicates that the ancillary cost of providing food and merchandise, as well as the staff needed to handle ticket sales, may be described as a semi-variable cost. Data on these costs and tickets sold from three similar events held at the venue have been collected and are tabulated below:
Tickets Sold
Cost ($)
2100
6640
3824
11284
4650
13525
Use the high-low method to estimate the total cost function relating to these ancillary costs.
b) The company will be renting the theatre which will host the upcoming red carpet evening. The budgeted fixed cost of both renting the theatre and paying the…
Chapter 5 Solutions
Operations Management
Ch. 5.8 - Explain the meaning of the phrase Hours versus...Ch. 5.8 - Prob. 1.2RQCh. 5.8 - Prob. 1.3RQCh. 5.8 - Prob. 1.4RQCh. 5.8 - Prob. 1.5RQCh. 5.S - Prob. 1DRQCh. 5.S - Prob. 2DRQCh. 5.S - Explain the term bounded rationality.Ch. 5.S - Prob. 4DRQCh. 5.S - Prob. 5DRQ
Ch. 5.S - What information is contained in a payoff table?Ch. 5.S - Prob. 7DRQCh. 5.S - Prob. 8DRQCh. 5.S - Under what circumstances is expected monetary...Ch. 5.S - Explain or define each of these terms: a. Laplace...Ch. 5.S - Prob. 11DRQCh. 5.S - Prob. 12DRQCh. 5.S - Prob. 13DRQCh. 5.S - Prob. 1PCh. 5.S - Refer to problem1. Suppose after a certain amount...Ch. 5.S - Refer to Problems 1 and 2 Construct a graph that...Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - The lease of Theme Park, Inc., is about to expire....Ch. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - A manager must decide how many machines of a...Ch. 5.S - Prob. 11PCh. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Give this payoff table: a. Determine the range of...Ch. 5.S - Prob. 16PCh. 5.S - Repeat all parts of problem 16, assuming the value...Ch. 5.S - Prob. 18PCh. 5 - Prob. 1DRQCh. 5 - Prob. 2DRQCh. 5 - How do long-term and short-term capacity...Ch. 5 - Give an example of a good and a service that...Ch. 5 - Give some example of building flexibility into...Ch. 5 - Why is it important to adopt a big-picture...Ch. 5 - What is meant by capacity in chunks, and why is...Ch. 5 - Prob. 8DRQCh. 5 - How can a systems approach to capacity planning be...Ch. 5 - Prob. 10DRQCh. 5 - Why is it important to match process capabilities...Ch. 5 - Briefly discuss how uncertainty affects capacity...Ch. 5 - Prob. 13DRQCh. 5 - Prob. 14DRQCh. 5 - Prob. 15DRQCh. 5 - Prob. 16DRQCh. 5 - What is the benefit to a business organization of...Ch. 5 - Prob. 1TSCh. 5 - Prob. 2TSCh. 5 - Prob. 3TSCh. 5 - Prob. 1CTECh. 5 - Prob. 2CTECh. 5 - Identify four potential unethical actions or...Ch. 5 - Any increase in efficiency also increases...Ch. 5 - Prob. 1PCh. 5 - In a job shop, effective capacity is only 50...Ch. 5 - A producer of pottery is considering the addition...Ch. 5 - A small firm intends to increase the capacity of a...Ch. 5 - A producer of felt-tip pens has received a...Ch. 5 - A real estate agent is considering changing her...Ch. 5 - A firm plans to begin production of a new small...Ch. 5 - A manager is trying to decide whether to purchase...Ch. 5 - A company manufactures a product using two machine...Ch. 5 - A company must decide which type of machine to...Ch. 5 - Prob. 11PCh. 5 - A manager must decide how many machines of a...Ch. 5 - Prob. 13PCh. 5 - The following diagram shows a four-step process...Ch. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - A new machine will cost 18,000, butt result it...Ch. 5 - Remodelling an office will cost 25,000 and will...Ch. 5 - Prob. 1CQCh. 5 - Prob. 2CQCh. 5 - Prob. 3CQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Develop a compensation package for 4 new job positions in a credit unionorganization:In designing the Compensation Package students will be required to:• Justify the need for the chosen job positionsarrow_forwardCase Study 2. The Liberty Cbok is a bookstore with three locations near the BS University campus. The bookstore has a program to sell personal computers to incoming freshmen and other students at a significant discount. The bookstore just covers computer costs, with a very small profit margin remaining. Orders come in throughout the summer, many only a few weeks before school starts in the fall, and the computer suppliers has a lead time of at least 6 weeks for delivery. Thus, the bookstore must forecast computer demand to build up inventory to meet student demand in the fall. The bookstore has a warehouse near campus where it must store all computers because it has no storage space at its retail locations. The number of computers ordered has effect to the number of temporary warehouses needed and workers who must be hired for handling and PC installations assistance. To get the forecast of computer sales the manager gets the computer purchase program for 14 years. Computer sales have…arrow_forwardable 4-4 on page 197 shows a relation called GRADE REPORT for a university. Your assignment is as follows: Draw a relational schema and diagram the functional dependencies in the relation. In what normal form is this relation? Decompose GRADE REPORT into a set of 3NF relations. Draw a relational schema for your 3NF relations and show the referential integrity constraints (as shown in Figure 4-5 on page 163). Draw an ER-diagram for your answer to part d above.arrow_forward
- Should a GC issue a purchase order or a subcontract agreement for each of the following different concrete scopes: Group of answer choices -Form purchase = -Form rental = -Rebar supply = -Rebar installation = -Concrete pump = -Concrete purchase = -Slab finishing = -Tilt-up crane = answer choices include : -Subcontract, -Purchase Order -Purchase order without Operator/ Subcontract with Operator -Either, subcontract agreement is better due to insurancearrow_forwardWithout any numbers, kindly explain what possible problem is being decided by the decision tree below?arrow_forwardPrepare a full decision table for the following case and then simplify. Credit card operations are approved when the bank account is real and active, amount is within limit and the location is correct. Cardholder is called when the bank account is real and active, and either amount is not within limit or location is not correct. Cardholder is also called when the bank account is real and not active, and either amount is not within limit or location is not correct. Vendor is called in two situations: 1. when the account is not real 2. when the account is real and not activearrow_forward
- As the Operations Manager of Shane Manufacturing Ltd., you are given the task to balance the assembly line that is used to produce a special type of toy. a. Develop your own scenario (quantitative example) of this line balancing problem. Include all relevant information b. Draw the precedence diagram for the problem that you set up in part “a” above. c. Use the example that you set up to demonstrate how you will balance the line.arrow_forwardMdm. Aurora is planning to organise a birthday party of her daughter, Isabelle, who will be 10 years old in a month time. They are expecting 50 guest coming with most of them will be Isabelle’s schoolmates. Below are the information that your group have gathered from Mdm. Aurora. - No peanut based in any of the meals due to Isabelle’s allergic to peanut.- Isabelle’s favourite movie is El Canto. Briefly explain how the catering function will be for Madam Aurora and propose the theme’s title/ name and concept of the event for her daughter.arrow_forwardSouth Hampton University is preparing its budget for the upcoming academic year. This is a specialisedprivate university that charges fees for all degree courses. Currently, 30,000 students are enrolled oncampus. However, the university is forecasting a 5 per cent growth in student numbers in the comingyear, despite an increase in fees to $3,000 per subject. The following additional information has beengathered from an examination of university records and conversations with university managers: South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. SouthHampton operates 2 semesters per year. The average academic staff salary is $120,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administrationand professional/community service. Each of the academic staff teaches the equivalent of…arrow_forward
- Determine whether alternative a, b, c, or d has the highest expected monetary value (EMV) for the decision free diagram below.arrow_forwardRoger Ginde is developing a program in supply chain management certification for managers. Ginde has listed a num- ber of activities that must be completed before a training program of this nature could be conducted. The activities, immediate pre-decessors, and times appear in the accompanying table: A—2 B—5 C—1 D B 10 E A, D 3 FC6 G E, F 8 A) Develop an AON network for this problem.b) What is the critical path?c) What is the total project completion time? Please answer A B C and show workarrow_forwardRoger Ginde is developing a program in supply chain management certification for managers. Ginde has listed a number of activities that must be completed before a training program of this nature could be conducted. The activities, immediate predecessors, and times appear in the accompanying table: Activity Immediate Predecessor(s) Time (days) A − 2 B − 5 C − 3 D B 10 E A, D 4 F C 5 G E, F 12 This exercise contains only parts b, c, and d. b) The critical activities for the leadership training program development project are B - D - E - G . c) The project length for the leadership training program development project = 31 days. d) Slack time for each of the activities is: Activity Slack Time A 00 B nothing C nothing D nothing E nothing F…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY