AnswerAll.Showdetail work
for
fullcredit.
0.5for
increase
0.3for
equal
20%
decrease
Option
1
$1,500
$300
$-800
Option
2
900
600
-200
Option
3
500
500
500
1. Consideracasewherethe management is
facing with 3options
to
choosefrom.
Thepayoffs and probabilityassociated
witheachof thescenariois
also
estimated and
provided.Based
on
the informationtabulated
below,calculatethe
EVwPI(expectedvaluewithperfectinformation)and
recommendwhat shouldbethemaximumamountthatthemanagement shouldpayfor
the
perfect informationthat
can
helpthem to makethe bestdecision.
2. A dietitianwants todesignabreakfastmenuforcertain
hospitalpatients.Themenuistoincludetwo items
Aand B.
SupposethateachounceofAprovides2unitsofvitaminCand2units of
ironandeach ounceofBprovides 1unitofvitaminCand2unitsof iron.
SupposethecostofAis 4¢/ounceandthe costofBis
3¢/ounce.Ifthe
breakfastmenumustprovideatleast8unitsof vitaminCand 10unitsof
iron, howmanyouncesofeach
itemshouldbeprovided
inorder
to
meettheironandvitaminC
requirementsfor
the
leastcost?Whatwill
this breakfastcost?
3. Weuse2,750peryear
of acertainsubassemblythathas apurchasecostof$450,andan annual
holdingcost of$500perunit.Eachorderplaced
costs us
$150.Weoperate300daysperyearandhave
foundthatanordermustbeplacedwithour
supplier12workingdaysbeforewecanexpecttoreceive that order. For thissubassembly,
find:
(a) The economic orderquantity,
(b) The reorderpoint.
4. WhyisERPimportantfor operationsand overallorganization?
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