Jeff kaufmanns machine shop sells a variety of machines for, Ask an Expert

Management Studies

Jeff Kaufmann's machine shop sells a variety of machines for job shops. A customer wants to purchase a model XPO2 drilling machine from Jeff's store. The model XPO2 sells for $180,000, but Jeff is out of XPO2s. The customer says he will wait for Jeff to get a model XPO2 in stock.

Jeff knows that there is a wholesale market for XPO2s from which he can purchase an XPO2. Jeff can buy an XPO2 today for $150,000, or he can wait a day and buy an XPO2 (if one is available) tomorrow for $125,000. If at least one XPO2 is still available tomorrow, Jeff can wait until the day after tomorrow and buy an XPO2 (if one is still available) for $110,000. There is a 0.40 probability that there will be no model XPO2s available tomorrow.

If there are model XPO2s available tomorrow, there is a 0.70 probability that by the day after tomorrow, there will be no model XPO2s available in the wholesale market. Three days from now, it is certain that no model XPO2s will be available on the wholesale market. What is the maximum expected profit that Jeff can achieve? What should Jeff do?

View complete question

Project Management, Management Studies

Category:- Project Management
Reference No.:- M92015359

Have any Question?Write your Review or question?

Related Questions in Project Management

Presentation and written assessment -the argumentative

Presentation and Written Assessment - The argumentative essay must be 1500 words in length. The presentation is about 10-15 minutes long depending on the size of the group. Task Description: The objective of this assignm ...

Topic - identifying the ways to overcome the communication

Topic - Identifying the ways to overcome the communication barriers of international project management students at central Queensland University. Literature review (1000 words) References would be needed in this section ...

Case study continuous improvementintroductionprecision

Case study: Continuous Improvement Introduction Precision Engineering Works Private Limited (PEW) is an original equipment manufacturer specialising in plastic moulding parts for the telecommunication industry. They have ...

Advanced project risk managementaimthe aim of this

Advanced Project Risk Management Aim: The aim of this assignment is to: demonstrate the understanding of Decision Tree/Expected Monetary Value and the use of the software Precision Tree schedule a project using Oracle Pr ...

Critical analysis reportthis is a group assessment for face

Critical Analysis Report This is a group assessment for face to face students and individual assessment for distance students The primary purpose of this assessment is to help you to develop and demonstrate your skills i ...

Project managment1explain what is meant by the following

Project managment 1. Explain what is meant by the following: "The project scope statement should not be built in isolation." 2. Discuss project management related problems created due to "scope creep." Each question shou ...

Project management for business assignment -enabling a

Project Management for Business Assignment - Enabling a Customer-Centric Experience through Project Management (Case Study Adapted from Project Management Institutes) Organization: Du Telecom and Huawei Technologies Co. ...

Principles of project management minor case study

Principles of Project Management Minor Case Study Assignment - Assignment objective - You are required to investigate a Project Management scenario, using information given to develop a written report and presentation to ...

Project management assessment - research studypurpose of

Project Management Assessment - Research Study Purpose of the assessment - Develop skills in Project communication planning. Communication is Key to Successful Project Management. The cases illustrate different approache ...

Assessmentthis assignment involves the portfolio of

Assessment This assignment involves the Portfolio of Materials and Team Charter 1. Description and justification of the innovation process used. A 1-page plan/outline that explains how social media will be used A short b ...

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

Recent Questions

Ask Project Management Expert