After graduating from college, your friends and you start an Internet auction service called TriangCom. Business...
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After graduating from college, your friends and you start an Internet auction service called TriangCom. Business has been fantastic, with 10 milion customer visits-or "hits"-to the site in the past year. You have several capacity decisions to consider. One key decision involves the number of computer servers needed. You are considering putting in 10, 20, or 30 servers. TriangCom generated $5.5 million last year, based on 10 million hits. Put another way, each hit generated, on average, $0.55 in revenue. Click the icon to view the costs and capacity limits. Click the icon to view the demand scenarios developed by marketing. a. The break-even point for the capacity of 10 servers is hits. (Enter your response rounded up to the next whole number) The break-even point for the capacity of 20 servers is hits. (Enter your response rounded up to the next whole number) The break-even point for the capacity of 30 servers is hits. (Enter your response rounded up to the next whole number) b. The indifference point for having 10 servers and having 20 servers options is hits. (Enter your response rounded to the nearest whole number.) c. Calculate the expected value for each capacity alternative. (Hint: Don't forget about capacity constraints that can limit the number of hits each capacity alternative can handle) Fill in the table below (enter your responses as whole numbers). Option 10 servers 20 servers 30 servers Expected Value The option for will maximize the expected value. d. TriangCom has hired Donna Olway to code programs. Donna completes her first job in 15 weeks and her second job in 12 weeks. Assume that (1) Donna continues to learn at this rate and (2) how time improvements will follow a leaming curve. Click the icon to view the selected n" and cumulative n values for different learning curves. Time needed Donna to complete her eighteenth job is weeks. (Enter your response rounded to three decimal places.) e. Time needed Donna to complete the next fourteen jobs (jobs 3 through 16) is weeks. (Enter your response rounded to three decimal places.) f. With thousands of customers, TriangCom has established a hotline to take customer calls. The hotine is staffed by one person 24 hours a day. You have the following statistics Service rate for calls 30 ner heir on avan After graduating from college, your friends and you start an Internet auction service called TriangCom. Business has been fantastic, with 10 milion customer visits-or "hits"-to the site in the past year. You have several capacity decisions to consider. One key decision involves the number of computer servers needed. You are considering putting in 10, 20, or 30 servers. TriangCom generated $5.5 million last year, based on 10 million hits. Put another way, each hit generated, on average, $0.55 in revenue. Click the icon to view the costs and capacity limits. Click the icon to view the demand scenarios developed by marketing. a. The break-even point for the capacity of 10 servers is hits. (Enter your response rounded up to the next whole number) The break-even point for the capacity of 20 servers is hits. (Enter your response rounded up to the next whole number) The break-even point for the capacity of 30 servers is hits. (Enter your response rounded up to the next whole number) b. The indifference point for having 10 servers and having 20 servers options is hits. (Enter your response rounded to the nearest whole number.) c. Calculate the expected value for each capacity alternative. (Hint: Don't forget about capacity constraints that can limit the number of hits each capacity alternative can handle) Fill in the table below (enter your responses as whole numbers). Option 10 servers 20 servers 30 servers Expected Value The option for will maximize the expected value. d. TriangCom has hired Donna Olway to code programs. Donna completes her first job in 15 weeks and her second job in 12 weeks. Assume that (1) Donna continues to learn at this rate and (2) how time improvements will follow a leaming curve. Click the icon to view the selected n" and cumulative n values for different learning curves. Time needed Donna to complete her eighteenth job is weeks. (Enter your response rounded to three decimal places.) e. Time needed Donna to complete the next fourteen jobs (jobs 3 through 16) is weeks. (Enter your response rounded to three decimal places.) f. With thousands of customers, TriangCom has established a hotline to take customer calls. The hotine is staffed by one person 24 hours a day. You have the following statistics Service rate for calls 30 ner heir on avan
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