Given the contribution made on each of the three products in the following table and their position in the life cycle. identify a reasonable operations strategy for each: Product Company Contribution Contribution (%: total annual _ _ _ Product (% of contribution divided P?5'"" "' selling price} by total annual sales) L'fe Cycle Desktop computer 30 50 Introduction Netbook computer 30 40 Maturity Hand calculator 50 10 Decline Identify possible strategies for the desktop computer. {Mark all that apply) I] A. Attempt to innovate highvolume production I] B. Develop supplier and distribution systems I] C. Modify and improve the production process I] D. Attempt to make production facilities more efcient Identify possible strategies for the netbook computer. {Mark all that apply) I] A. Improve cost control for protability and market share I] B. Consider terminating production I] C. Develop supplier and distribution systems I] D. Attempt to innovate highvolume production Identify possible strategies for the hand calculator. (Mark all that apply.) A. Consider terminating production B. Attempt to develop an improved product C. Increase capacity )D. Improve cost control for profitability and market sharePerform a "productbyvalue\" analysis on products A, B, C. D, and E. IU A B C D E Unit Contribution $1.35 $0.85 $0.27 $0.05 $0.85 TotalContribution $80,000 $63,000 $115,000 $59,000 $95,000 The list of products in descending order of their individual dollar contribution to the rm: E. The list of products in descending order of their total dollar contribution to the rm: 1' . Based on the "product-byvalue" analysis, which products are the 3 lowest in total dollar contribution and, therefore, possible candidates for replacement? Products Y should be investigated for replacement. MacDonald Products, Inc., of Clarkson. New York, has the option of (a) proceeding immediately with production of a new topottheline stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk. VP for operations, proceeds with the existing prototype (option a}, the rm can expect sales to be 100,000 units at $620 each, with a probability of 0.24 and a 0.?6 probability of 60,000 at $620. If, however. he uses the value analysis team (option b), the rm expects sales of 80,000 units at $?40, with a probability of 0.69 and a 0.31 probability of 60,000 units at $740. Value engineering, at a cost 0f$110,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EMV for option a is $ and the EMV for option b is $ . Therefore, option a has the highest expected monetary value. (Enter your responses as integers.) Ritz Products's materials manager, Tej Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV that the rm is about to produce. Three million units are expected to be produced over the life cycle. If the product is made, startup and production costs of the make decision total $2 million, with a probability of 0.4 that the product will be satisfactory and a 06 probability that it will not. If the product is not satisfactory. the rm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether to spend another $2 million to redesign the semiconductor or to purchase. Likelihood of success the second time that the make decision is made is 0]. lfthe second make decision also fails, the rm must purchase. Regardless ofwhen the purchase takes place, Dhakar's best judgment of cost is that Ritz will pay $0.60 for each purchased semiconductor plus $2 million in vendor development cost. a)Assuming that Ritz must have the semiconductor (stopping or doing without is not a viable option), what is the best decision? The rm should Y the semiconductors because this decision has an expected cost of$ . (Enter your response as an integer.) b) What criteria did you use to make this decision? In this case, expected monetary value is represented by V . To make the decision in part (a), we found the V of these values. c) What is the worst that can happen to Ritz as a resut The worst that can happen is that the rm spends $ . The best that can happens is that the rm only spends $ of this particular decision? What is the best that can happen? . (Enter your responses as integers.) Sox Engineering designs and constructs air conditioning and heating (HVAC) systems for hospitals and clinics. Currently the company's staff is overloaded with design work. There is a major design project due in 3 weeks. The penalty for completing the design late is $14,000 per week, since any delay will cause the facility to open later than anticipated, and cost the client signicant revenue. If the company uses its inside engineers to complete the design, 'rtwill have to pay them overtime for all work. Sox has estimated that it will cost $10,000 per week (wages and overhead), including late weeks, to have company engineers complete the design. Box is also considering having an outside engineering rm do the design. A bid of $32,000 has been received for the completed de5ign. Yet another option for completing the design is to conduct a joint design by having a third engineering company complete all electromechanical components of the design at a cost of $56,000. Sox would then complete the rest of the design and control systems at an estimated cost of $30,000. Box has estimated the following probabilities of completing the project within various time frames when using each ofthe three options. Those estimates are shown in the following table: Probability of Completing the Design Option 0n Tlme One Week Late Two Weeks Late Three Weeks Late Internal Engineers 0.4 0.5 0.1 External Engineers 0.2 0.4 0.3 0.1 Joint Design 0.2 0.4 0.3 0.1 The expected monetary value using inside engineers to complete the design is $ . (Enter yourresponse as an integer) The expected monetary value using an outside engineering rm to complete the design is $ The expected monetary value of conducting a joint design is $ What is the best decision based on an expected monetary value cr'rten'on'? 0 External engineering rm 0 Internal engineers . (Enter your response as an integer) . (Enter your response as an integer) 0 Joint design