Both individuals and organizations can be consumers.<br> O True<br> O False

Suppose a manufacturing plant is considering three options for expansion. The first one is to expand into a new plant (large), t

sp2606 [1]

Answer:

a. $50,000

b. $77,500

c. $27,500

d. Large expansion or plant

Explanation:

a. What is the highest Expected Monetary Value (EMV)?

1. EMV of Large expansion = ($100000×0.50) + ($10000×0.25) + (-$10000×0.25)

EMV of Large expansion =

2. EMV of Medium expansion = ($40000×0.50) + ($40000×0.25) + ($5000×0.25)

EMV of Medium expansion = $31,250

3. EMV of Small expansion = ($15000×0.50) + ($15000×0.25) + ($15000×0.25)

EMV of Small expansion = $15,000

The highest EMV is $50,000 which is the EMV of Large expansion.

b. What is Expected Value with Perfect Information (EVwPI)?

EVwPI is obtained by adding together the expected value of the highest profit from each of the expansions as follows:

EVwPI = ($100000×0.50) + ($40000×0.50) + ($15000×0.50)

EVwPI = $77,500

c. What is the organization willing to pay for perfect information?

This requires the calculation of Expected Value of Perfect Information (EVPI). This can be obtained as follows:

EVPI = EVwPI - EVwoPI

Where EVwoPI denotes Expected Value without Perfect Information and it is is the highest EMV of $50,000 which is the EMV of Large expansion obtained in a above.

Substituting the figures, we have:

EVPI = $77,500 - $50,000 = $27,500

d. Which of the expansion plans should the manager choose?

The manager should choose the large expansion because it has the highest or maximum EMV of $50,000.

4 0

2 years ago

Read 2 more answers

A production system in which there is little or no delay time and idle-in process and finished goods inventory is called a______

AveGali [126]

Answer:

Just in time inventory system

Explanation:

Just in time inventory system is on that ensures that the amount of a product needed is available to the consumer and no more is stockpiled.

For this inventory style to be successful the business will need to forecast accurately the demand of customers.

Just in time inventory system is aimed at increasing efficiency and reducing cost such as storage cost.

There is little or no delay time and idle-in process and finished goods inventory

8 0

3 years ago

Read 2 more answers

Paul, a manager at a logistics company. Wants to have Emma, a temporary worker, handle customers’ queries. Paul’s colleague. Ali

andrew11 [14]

Answer:

5. Emma may not be as dedicated to the firm as other permanent employees

Explanation:

Logistics as a business activity is concerned with efficient movement of goods with least pilferage and spoilage and at the same time, as promptly as possible.

Handling customer queries requires utmost politeness, patience and humility and such a function is very sensitive since a small error or wrong attitude can drastically affect customer preferences and business sales.

In the given case, Ali's argument can only be strengthened by the fact that Emma is a temporary employee and it cannot be expected of her to discharge her duties with the same dedication as a permanent employee would.

Temporary employees know their term of employment beyond which they most likely seek job elsewhere. Whereas, a permanent employee would usually be more dedicated since he would have better sense of belongingness with the company.

5 0

3 years ago

An example of a physical goal is:

Aloiza [94]

C i think im not sure

3 0

3 years ago

Read 2 more answers

A deli is offering a special for its sandwiches. a customer will receive three free sandwiches for every five sandwiches purchas

ArbitrLikvidat [17]

We see that for every 8 sandwiches that the customer needs, he will pay for 5. Lets see how many groups of 8 sandwiches the order of 675 sandwiches contains. If we do Euclidean Division we see that there are 84 groups of 8 and that three sandwiches are the remainder. 675/8=84.375; Hence we have 84 groups and 0.375*8=3 sandwiches that remain. Thus, the customer would play for 84*5= 420 sandwiches if he had ordered 84 groups of 8 (namely 672 sandwiches). Since he needs another 3 sandwiches and there is no promotional offer for those, he will have to pay in total for 423 sandwiches. It is important to not divide the total number by 8 and then multiply it by 5; the customer gets the free sandwiches only if he completes an offer of 5 sandwiches, thus we have to group the sandwiches in octads and deal with the remainder separately.

4 0

3 years ago

Both individuals and organizations can be consumers. O True O False