Question $1$:

John Doe has to choose how many sandwiches to make in advance of each day before he knows the actual demand. If left overnight, the sandwiches will be off and be unable to be sold.

His choice is between $40,50,60$ and $70$ sandwiches.

The actual demand can also vary between $40,50,60$ and $70$ with the probabilities as shown in the table $-$ e$.$g$.$ P$($demand $=40)$ is $0\mathrm{.}2.$

The table then shows the profit or loss, for example, if he chooses to make $70$ but demand is only $50,$ then he will make a loss of $$75\mathrm{.}00.$

Daily Demand

Probability

Daily Supply

$40$

$50$

$60$

$70$

$40$

$0\mathrm{.}2$

$$100\mathrm{.}00$

$$0\mathrm{.}00$

$$(100\mathrm{.}00)$

$$(200\mathrm{.}00)$

$50$

$0\mathrm{.}2$

$$100\mathrm{.}00$

$$125\mathrm{.}00$

$$25\mathrm{.}00$

$$(75\mathrm{.}00)$

$60$

$0\mathrm{.}3$

$$100\mathrm{.}00$

$$125\mathrm{.}00$

$$150\mathrm{.}00$

$$(25\mathrm{.}000)$

$70$

$0\mathrm{.}3$

$$100\mathrm{.}00$

$$125\mathrm{.}00$

$$150\mathrm{.}00$

$$175\mathrm{.}00$

Using the minimax, maximax, minimax regret theorem, determine the optimal number of sandwiches John Doe should produce per day.

Question $2$:

You are a technology manager of firm that offers retail items in an on$-$line environment.The software that your firm current utilizes does not fully meet the requirements of you clients and you have three options, as outlined below, to correct the issues.Using a decision tree, determine the best option for the firm $($Show All Calculations$).$

Process

Cost

Market Reaction

Probability of Success

Return$-$On$-$Investment

Purchase New Software

$$3,000,000$

Good

$90\%$

$$4,000,000$

Poor

$10\%$

$$50,000$

Create Software $($In$-$House$)$

$$1,500,000$

Good

$75\%$

$$3,000,000$

Poor

$25\%$

$$250,000$

Update Current Software

$$500,000$

Good

$60\%$

$$2,000,000$

Poor

$40\%$

$$250,000$

Question $3$:

You are the technology manager of a small construction firm and before the upcoming construction season you wish to make the argument that the use of nail guns can reduce costs and save the firm money and time.To demonstrate this, you decide to use a benefit cost analysis on the three popular types of nail guns, namely the generic, name brand and professional units.The various costs and benefits of these tools are outlined below.Determine the tool with the best benefit$-$cost ratio and if this tool depreciates by $7\%$ per year, what would the asset $($the tool$)$ be worth after its life expectancy of $5$ years.

Item

Generic

Name Brand

Professional

Nail Gun Cost

$$10,300\mathrm{.}00$

$$15,850\mathrm{.}00$

$$30,300\mathrm{.}00$

Revenue Increase

$$22,000\mathrm{.}00$

$$30,000\mathrm{.}00$

$$40,000\mathrm{.}00$

Increased Quality

$$3,000\mathrm{.}00$

$$4,000\mathrm{.}00$

$$6,000\mathrm{.}00$

Warranty Reduction

$$1,200\mathrm{.}00$

$$1,500\mathrm{.}00$

$$1,200\mathrm{.}00$

Labour Reduction

$$31,200\mathrm{.}00$

$$31,200\mathrm{.}00$

$$31,200\mathrm{.}00$

Training

$$1,800\mathrm{.}00$

$$1,800\mathrm{.}00$

$$1,800\mathrm{.}00$

Extra Insurance

$$1,500\mathrm{.}00$

$$900\mathrm{.}00$

$$300\mathrm{.}00$

Question $4$:

You are purchasing a new smart phone and unsure which model to select.You decide to construct a relevance tree to determine which is the best option for you.Research at least five $(5)$ different cell phone manufacturers and develop a relevance tree based on five $(5)$ different aspects of the cell phone, such as battery life, camera quality, processor speed, etc.Choose a cell phone, based on the relevance tree, and explain your choice.

Question $5$:

You are a technology manager of a new but promising cell phone manufacturer, located in St$.$ John's, Newfoundland.Your CEO has come to you with a potential new product of developing a new business cell phone to replace the older models that do not seem to fit with the current business community. The CEO has tasked you with developing a Delphi survey that could justify your firm breaking into this new market area and he would like you to prepare a preliminary survey identifying five $(5)$ experts and five $(5)$ potential survey questions.Note, you do not have to identify the experts by name but by firm, position and qualifications.

Question $6$:

Your CEO is intrigued by your Delphi questions and choice of experts, and now wishes that you perform a SWOT analysis of the new business cell phone, as outlined in the above question, to determine if it is a viable business idea and if further time should be allocated to this project.Complete the SWOT and make your recommendation to the CEO.