Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Operation Management Expert

Problem: RDF, Inc., a smart tag manufacturer, is investigating the probability of producing and marketing the new RFID tag. Undertaking this project will necessitate either purchasing a sophisticated IT system or hiring and training several additional engineers. The market for the product could be either favourable or unfavourable. RDF, Inc., of course, has the option of not developing new product at all.

With favourable acceptance by market, sales would be 25,000 tags selling for $100 each. With unfavourable acceptance, sales would be only 8,000 tags selling for $100 each. The cost of IT equipment is $500,000, but that of hiring and training three new engineers is only $375,000. However, manufacturing costs should drop from $50 each with manufacturing devoid of the IT system, to $40 each when manufacturing with IT. The probability of favourable acceptance of new smart tag is 0.40; the possibility of unfavourable acceptance is 0.60.

Draw a decision tree. Then analyze it to find out the expected payoff for each decision and event node. Which alternative (buying the IT system, hiring engineers) has the good expected payoff?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M94315
  • Price:- $30

Guranteed 24 Hours Delivery, In Price:- $30

Have any Question? 


Related Questions in Operation Management

Need solution for business communications activity

Need solution for Business communications Activity 9.14 Problem: Like many executives, your boss is too busy to shift through all the articles describing current technology trends and predictions for the future. She has ...

Assignmentresolving conflict and negotiating skills the

ASSIGNMENT Resolving conflict and negotiating skills. The five major styles of conflict management are: competitive accommodative sharing collaborative avoidant From the information above with the five major styles, deve ...

The concept of if we fight terrorists somewhere else they

The concept of "If we fight terrorists somewhere else, they will not come here" has been bantered about for years. Do preemptive actions work better than a defensive posture (attacking terrorists on home soil)? Explain y ...

Prepare a project management plan for a large employee

Prepare a project management plan for a large employee Christmas Party. The project management plan must include the following items: Scope Plan Scope Management Scope (Includes Requirements Traceability Matrix) WBS Sche ...

Imagine that you work with the hr director at your company

Imagine that you work with the HR director at your company, and she has asked you to suggest some ways to reinforce employees' sense that their jobs have an important positive impact on others. What would you suggest?

Analyze the changing nature of health care reform evaluate

Analyze the changing nature of health care reform. Evaluate the impact of these changes on workforce demands and the role of human resource. Support your post with specific examples?

Health promotion programsyou are the director of patient

Health Promotion Programs You are the director of patient services for a federally qualified health center. The department of health and human services (HHS) has announced a grant for health centers like yours to run any ...

The owner of the store can hire either full time employees

The owner of the store can hire either full time employees or part time employees. Full-time employees work for 8 consecutive hours and hence can be hired for the following shifts: 8:00 am to 4:00 pm (Shift 1), Noon to 8 ...

Strategic safety programsafety programs may accomplish

Strategic Safety Program Safety programs may accomplish their purposes in two primary ways: one focusing on unsafe employee actions and the other on unsafe working conditions. Design  a basic safety program of your choic ...

Operationsall organizations regardless of industry can

Operations All organizations, regardless of industry, can implement lean operations. In the organization where you currently work, an organization where you worked previously, or one with which you are familiar, describe ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen