A. Forsters Market Page 174

Please complete questions 1-4. Please upload your answers in word format.

1. What are the two capacity options that Robbie needs to consider? What are their fixed and variable costs? What is the indifference point for the two options? What are the implications of the indifference point?

2. Draw the decision tree for the roaster decision. If Forsters does not invest in the roaster, does Robbie need to worry about the different demand scenarios outlined above? Why or why not?

3. Calculate the expected value for the two capacity options. Keep in mind that, for the roaster option, any demand above 14,400 pounds will generate revenues of only $2.90 a pound. Update the decision tree to show your results.

4. What is the worst possible financial outcome for Forsters? The best possible financial outcome? What other factorscore competency, strategic flexibility, etc. should Robbie consider when making this decision?

B. Weekly Supply Chain Article Review

This assignment will be based on the students selection of a contemporary supply chain, operations or logistics article. To receive full credit, the student will attach the link of the article and provide a 1-page summary of the article. Intro to the article, what is the purpose and what was the learning outcome.