The gorman manufacturing company must decide whether it, Ask an Expert

Management Studies

The Gorman Manufacturing Company must decide whether it should purchase a component part from a supplier or manufacture the component at its Milan, Michigan plant. If demand is high, it would be to Gorman’s advantage to manufacture the component. However, if demand is low, Gorman’s unit manufacturing cost will be high due to under-utilization of equipment. The projected profit in thousands of dollars for Gorman’s make or buy decision is shown below.

Low Demand Moderate Demand High Demand

Manufacture -$25 $40 $100

Purchase $10 $45 $70

Construct the regret table. Solve for minimax regret.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92576345

Have any Question?Write your Review or question?

Related Questions in Operation Management

Assignment1 one of the major issues with implementing bcdr

Assignment 1) One of the major issues with implementing BC/DR is that companies will often miss non-obvious, yet crucial, data and resources. Many organizations have in-house developed scripts, spreadsheets, and other da ...

A report on state of information technology as of now

A Report on State of Information Technology As of now, technology is playing a major role in the field of health care. From the computerisation of medical records to the complex operations, technology has its hand in eve ...

1 what is a placeholder where word inserts content in a

1. What is a placeholder where Word inserts content in a document? 2. What systems do health plans to improve their ability to detect fraud 3. What are defenses to charges of wrongful interference with the business right ...

1 what are 5 primary functions of a warehouse name 3

1. What are 5 primary functions of a warehouse. Name 3 secondary functions of a warehouse 2. Discuss some ways you can take action once you have awareness of the diversity in your team. 3. Which of the following forms of ...

Maker manufactures printing presses news a publisher of a

Maker manufactures printing presses. News, a publisher of a local newspaper, had decided to purchase new presses. Rep, a representative of Maker, met with Boss, the president of News, to describe the advantages of Maker' ...

1 true or false when creating the ldquoproduct roadmaprdquo

1. True or False, when creating the “Product Roadmap” it is necessary to outline all requirements needed to complete the project by decomposing the largest requirements into smaller and smaller pieces? Justify your answe ...

1 what is ldquoprocess capabilityrdquo how can a firm

1. What is “process capability”? How can a firm generally improve process capability? 2. What are the seven basic ways in which organiztions are structured, and how do these structures relate to the organizations purpose ...

Increasing knowledge about the biological factors that are

Increasing knowledge about the biological factors that are a part of abuse and dependence has opened the doors for the development of drug therapies that may be useful in the treatment of addictive disorders. The increas ...

Was robert eaton a good coach on pages 256-257 in the

Was Robert Eaton a Good Coach on pages 256-257 in the textbook and the Major Functions and Key Behaviors tables on page 257, evaluate Eaton’s coaching skills. In your response address the following elements: What major f ...

1 there are instances in which a marketing researcher wants

1. There are instances in which a marketing researcher wants to see if there is a relationship between the responses to one question and the responses to another question in the same survey. Identify the four types of po ...

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 Operation Management Expert