a.
Interpretation:The conflicting requirement of “Reducing WIP as well as reducing worker idle time” with respect to job shops is to be explained.
Concept Introduction:Every organization has to strive toachieve many requirements. Sometimes the steps taken for one requirement may result in opposite result for the other. In that case, one has to prioritize the more important parameter, or as it is said, optimize the results.
It may not be entirely correct to generalize these as conflicting requirements. It may be better to call these as complementary objectives.
b.
Interpretation:The two “conflicting” requirement from a job shop i.e. “Providing high level of customer service and improving the unit efficiency” are to be explained.
Concept Introduction:Every organization has to strive toachieve many requirements. Sometimes the steps taken for one requirement may result in opposite result for the other. In that case, one has to prioritize the more important parameter, or as it is said, optimize the results.
It may not be entirely correct to generalize these as conflicting requirements. It may be better to call these as complementary objectives.
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EBK PRODUCTION AND OPERATIONS ANALYSIS
- A payoff table is given as: S1 S2 S3 D1 250 750 500 D2 300 -250 1200 D3 500 500 600 (a) What choice should be made by the optimistic decision maker? (b) What choice should be made by the conservative decision maker? (c) What decision should be made under minimal regret? (d) If the probabilities of d1, d2, and d3 are .2, .5, and .3, respectively, then what choice should be made under expected value?arrow_forwardDescribe the significance of a problem statement and what exactly is included in a problem statement.arrow_forwardThe following payoff table provides profits based on various possible decision alternatives and various levels of demand. ALTERNATIVE DEMAND LOW MEDIUM HIGH Alternative 1 40 80 150 Alternative 2 80 120 130 Alternative 3 100 100 100 a. Which alternative should be chosen using the equally likely decision criterion? b. Set-up the opportunity loss table. c. Which alternative should be chosen using the minimax regret criterion?arrow_forward
- A franchise operation that sells frozen custardintends to open one or more new stores in amedium-sized metropolitan area. Three sitesare under consideration. Each site hassomewhat different projected profitcontribution and different supervisionrequirements. The first site has an estimateddaily profit of $200 and a weekly supervisionrequirement of 48 hours; the second site has aprojected profit of $100 per day and a weeklysupervision requirement of 30 hours; and thethird site has an estimated daily profit of $150and a weekly supervision requirement of 20hours. The firm will have 65 hours available forper week for supervision.Use Excel to determine which site or sitesshould be selected in order to obtain thehighest projected daily profit?arrow_forwardper board and fixed costs of $300,000. Determine: The number of skateboards required to sell to breakeven. The profit if they have been selling about 8,000 pr year. a) Now, they are considering undertaking an advertising program with GBC Promotions that would cost $150,000 (additional fixed cost) and increasing the price by $160 to $400. Find the number of skateboards required to sell at $400 and make the same amount of profit as in part “b”. b) What is the % sales decline that can occur in c, to make the same profit as beforearrow_forwardMake a plan on a specific sport event you want to have in your community following the steps in organising a sport event. Don't forget to consider availability of resources and facilities available in your community as well as the interests of the people living in it. This is the format: Name of the Community: 1. Planning Sport Event: Objectives of the Sport Event: Theme for the Event: Venue/available facilities in the community to be used in the event: Initial Budget/Source of Budget: 2. Organizing Program and Schedule: Policies: 3. Staffing Designate people/staff needed in the event and their duties Designation Dutiesarrow_forward
- A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. Bidder Installed Cost Annual Operating Cost Annual Income from Mercury Recovery Salvage Value Foxhill $ 70,000 $5000 $6500 $10,000 Instrument Quicksilver 50,000 5000 2500 0 Almaden 90,000 5000 7800 10,000 If the installation will last 15 years and money is worth 12%, which equipment should be purchased?arrow_forward1) A television network earns an average of $1.6 million each season from a hit program and loses an average of $400,000 each season on a program that turns out to be a flop, and of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. a) Construct a decision tree to help the television network identify the strategy that maximizes itsexpected profit in responding to a newly proposed television program. Make sure to label all decisionand chance nodes and include appropriate costs, payoffs and probabilities. b) What should the network do? What is their expected profit? c) The network can conduct market research to determine whether a program will be a hit or a flop. If the market research report is perfectly reliable, what is the most the network should be willing to pay for it? 2) A buyer for a large sporting goods store chain must place orders for professional footballs with the football manufacturer six months prior to the…arrow_forwardUSCA Oil is a privately-held firm, owned by three families. They have two plants in the US (one in Dallas and one in Indianapolis) and one plant in Canada (Edmonton). They also have acquired a small lab in Grand Rapids, Michigan. Except for one item, all the items below can potentially cause a principal-agent problem. Choose the item that does not cause such a problem. 1. Expanding their NPD group, the managers in Indianapolis plant are hiring two highly educated engineers. 2. The manager of the Dallas plant is hiring a new HR Director. 3. To organize lab operation in Michigan, the owners have asked the previous manager of the Edmonton's plant to become the manager of their newly-acquired lab. 4. One of the owning families plans to sell half of its existing stocks to the other two families, with equal shares. #2 is not correctarrow_forward
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