Operations Management: Sustainability and Supply Chain Management Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134422404
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter A, Problem 8P
a)
Summary Introduction
To determine: The things that must be done by Person J using expected value.
Introduction: Decision-making is the process that helps to make decision. It is the process of choosing a best alternative by evaluating many alternatives.
b)
Summary Introduction
To determine: The decision tree showing payoffs and probabilities.
Introduction: Decision-making is the process that helps to make decision. It is the process of choosing a best alternative by evaluating many alternatives.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Question 1
(b)
A company is considering to invest in eight projects. The estimated cost of each project, the perceived priority points, the estimated number of new jobs each project would create are provided in the Table 1.
Table 1
Project
Cost ($)
Priority Points
New Jobs
X1
X2
X3
X4
X5
X6
X7
X8
5000
4500
600
2000
6000
800
3200
2500
3176
2774
3513
2928
4607
862
3829
2708
5
1
2
1
3
1
7
2
1. Formulate objective function for this 0-1 integer model to maximise the total number of perceived priority points.
Considering the above problem write down mathematical equations for each of following conditions/constraints.
2. A budget of $21000 is available for the projects.
3. The company wishes to fund at most three of the projects.
4. The company wants to create at least 8 new jobs from these projects.…
Question 1
(b)
A company is considering to invest in eight projects. The estimated cost of each project, the perceived priority points, the estimated number of new jobs each project would create are provided in the Table 1.
Table 1
Project
Cost ($)
Priority Points
New Jobs
X1
X2
X3
X4
X5
X6
X7
X8
5000
4500
600
2000
6000
800
3200
2500
3176
2774
3513
2928
4607
862
3829
2708
5
1
2
1
3
1
7
2
4. The company wants to create at least 8 new jobs from these projects.
5. Only one of the two projects, i.e., X3 and X5 should be funded at this time but not both.
6. The company believes that if it decides to invest in project X7 then it should also invest in project X8, and vice versa.
[DO NOT SOLVE THE ABOVE MODEL YOU DEVELOPED IN QUESTION 1 (b).…
QUESTION 3 J
A decision tree has action a1 with outcomes s1, s2 and s3 with payoffs K8000, K10000 and -K1000
Decision a2 with outcomes s1, s2 and s3 with payoffs K3000, K6000 and -K2000
Decision a3 with outcomes s1, s2 and s3 with outcomes K10 000, -K900 and K50
Required:
Find the actions that would be prescribed by the Maximax, and Maximin criterion.
Explain why the action prescribed by the Maximin criterion here is potentially unreasonable from a practical viewpoint
Chapter A Solutions
Operations Management: Sustainability and Supply Chain Management Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 24PCh. A - Prob. 25PCh. A - Prob. 26PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 28PCh. A - Prob. 29PCh. A - Question A.24 On the opening page of Module A and...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...Ch. A - Question Warehouse Tenting at the Port of Miami...
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
- Question #4 - Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry loves to take his own bike on 50-mile trips with his friends, but he believes that any small business should be started only if there is a good chance of making a profit. Jerry can open a small shop, a large shop, or no shop at all. The profits will depend on the size of the shop and whether the market is favorable or unfavorable for his products. Because there will be a 5-year lease on the building that Jerry is thinking about using, he wants to make sure that he makes the correct decision. Jerry is also thinking about hiring his old marketing professor to conduct a marketing research study. If the study is conducted, the study could be favorable (i.e., predicting a favorable market) or unfavorable (i.e., predicting an unfavorable market). Develop a decision tree for Jerry.arrow_forwardQUESTION THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory. Develop a level of production plan (aggregate plan) and determine the cost. b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.arrow_forwardQUESTION: Although Ken Brown is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance. Bob attributes his success to his pessimistic attitude about business and the oil industry. Given the information, it is likely that Bob will arrive at a different decision. What decision criterion should Bob use, and what alternative will he select? INFO NEEDED TO COMPLETE: Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by a factor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil because of competition. His alternatives are shown in the following table: Equipment Favorable Market $ Unfavorable Market $ Sub 100 300,000 -200,000 Oiler J 250,000 -100,000 Texan 75,000 -18,000 For example, if Ken purchases a Sub 100 and if there is a favorable market,…arrow_forward
- Module 5 Question 6 The owner of the Petreno Pharmaceutical Company is evaluating the expected annual sales for a new line of facial care products and estimates that there is a 60 percent chance that the product line will be extremely successful, in which case it will generate sales next year of 8.0 million. However, since the new product line has a unique appeal that will require substantial advertising by its manufacturer to gain consumer acceptance, there is a 40 percent chance that revenues for next year will be a modest 1.0 million. What is the expected level of revenues for the new product line? The expected total revenue for the new line of products is $ ___ millionarrow_forwardDiscussion Question: Discuss the requirements for strategic management of IS/IT. What are some challenges to implementing these requirements?arrow_forwardQuestion: Consider the following linear program: Max Z = 2*x + 3*y subject to 3*x + 4*y >= 12 3*x + 2*y >= 9 y>= 1 x,y >= 0 The number of feasible corner points is: 0 1 2 3 None of the other answers are correct.arrow_forward
- question: What are the optimal number of Lounge Chairs and Small Sofas to produce and what is the total profit?arrow_forwardIf a company wants to have a sports day at the resort where you work, with lunch followed by a dinner and casino night, with whom do they need to coordinate? Question 14 options: a) With the caterer and the sports complex manager. b) With the company contact, resort restaurant, and tennis pro. c) With the sales department, convention services, and banquet manager. d) With caterers, guest services, and the media manager.arrow_forwardQuestion 1 Part 1 Read the case below and answer true/false Case Assignment: CEC Entertainment, Inc (Chuck E. Cheese’s)For more than 35 years, Chuck E. Cheese’s has been one of the nation’s go-to venues for children’s birthday parties and rainy afternoon outings. Operating under the slogan “Where a kid can be a kid,” there are more than 575 Chuck E. Cheese’s locations in 47 states and 10 foreign countries or territories. Their goal is to provide a fun and safe environment for children to play and families to create memories, but in 2015 Chuck E. Cheese’s made improvements notfor the children, but for the parents. “Your average kid who comes to Chuck E. wants to come 11 times a year; they come three times a year. The difference between that and the 11 times a year they want to come is the mom and dad veto,” said Tom Leverton, CEO of CEC Entertainment, Inc. “What we’ve been doing over the past couple of years especially is trying to address the mom and dad…arrow_forward
- Question 11: Case studyDue to a sudden increase in students applying for civil engineering courses, the University of Greenfields want to expand their civil engineering department. This growth has been driven by a government initiative to increase the number of engineering graduates.The University has been seeking a suitable location to build a new complex which will consistof a lecture theatre, tutorial rooms, student accommodation, sports hall and administrativefacilities. The University has stipulated that the design of the new complex must reflect the innovative image it is promoting and meet new and very challenging environmental targets. The final design will be submitted for a prestigious architectural award. Winning the award would raise the profile of the University and contribute to its strategy in becoming the leading University in its field. However, a previous attempt to win a similar award failed due to a lack of cooperation between departments. There is also a history of…arrow_forwardQUESTION ONE(a) Mr. Sak is interested in developing and marketing a new drug. The cost of extensiveresearch to develop the drug would be 100,000. The manager of research programme saidthat there is 60% chance that the drug will be developed successfully. The market potentialis assessed as follows with present value of profit:Market conditions Probability Present value of profits.Large market potential 0.1 500,000Moderate market potential 0.6 220,000Low market potential 0.3 80,000The present value figures do not include the cost of research. While Mr. Sakala wasconsidering this proposal, another similar proposal came up which also required theinvestment of 100,000. The present value of profit for the second proposal was 120,000.The return on the investment in the second proposal is almost certain.i. Draw a decision tree for Mr. Sak indicating all choices and eventsii. What decision Mr. Sak should take regarding the investment of 100,000?iii. If Mr. Sak is a risk averter, should he…arrow_forwardQuestion 1 part 1 Read the case below and answer multiple choice Case Assignment: CEC Entertainment, Inc (Chuck E. Cheese’s)For more than 35 years, Chuck E. Cheese’s has been one of the nation’s go-to venues for children’s birthday parties and rainy afternoon outings. Operating under the slogan “Where a kid can be a kid,” there are more than 575 Chuck E. Cheese’s locations in 47 states and 10 foreign countries or territories. Their goal is to provide a fun and safe environment for children to play and families to create memories, but in 2015 Chuck E. Cheese’s made improvements notfor the children, but for the parents. “Your average kid who comes to Chuck E. wants to come 11 times a year; they come three times a year. The difference between that and the 11 times a year they want to come is the mom and dad veto,” said Tom Leverton, CEO of CEC Entertainment, Inc. “What we’ve been doing over the past couple of years especially is trying to address the mom…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.