Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hi help please 1) ABC Corpotation's decision to produce a new line of recreational products resulked in the need to construct eister a small plant
hi help please
1) ABC Corpotation's decision to produce a new line of recreational products resulked in the need to construct eister a small plant or a large plant. The best selection of plant size depends on how the marketplace eacts to the new product line. To conduct an analysis, marketing management has decided to vicw the possible longnun demand as low, medium, or high. The following payoff table shows the projected profit in millions of dollars: a. What is the decision to be made? (10 p.) b. Construct a decision tree. (25p. c. Recommend a decisiog based on the use of the optimistic, conservative (pessimistic), and minimax regret appeoaches (without cottsideration of probabilities). ( 15 p.) 2) BBB, Inc., is a small manufacturer of solf equipenent and supplies. BBB's distributor believes a market exists for both a medium-priced gotf bug, referred to as a standard model, and a high-priced golf bag. refcrred to as a deluxe model. The distributor is so confident of the market that, if BBB can make the bags at a competitive price, the distributor will purchase all the bags that BBB can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the three required manufacturing eperations and the accounting department's estimate of the ptofit eontribution per bag: The director of manufacturing estimales that 900 hours of culting and dyeing time, 300 hours of sewing time, 100 hours of finishing time will be available for the production of golf bags during the next three months. a. If the company wants to maximize total profit contribution, how many bags of each model should it manufacture? (Calculate with the graphical method) (30p.) b. How many hours of production time will be scheduled for each operation? (10p) c. What is the slack time in each eperation? (10 p.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started