Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Operation Management Expert

The product design group of the Flores Electrick Supplies, Inc., has verified that it needs to design the new series of switches. It should decide on one of three design strategies. The market forecasts are for 200,000 units. The better and more sophisticated the design strategy and more time spent on value engineering, the less will be variable cost. The chief of engineering design has decided that the following costs are good estimate of initial and variable costs connected with each of three strategies:

a) Low Tech: A low-tech, low cost process comprising of hiring many new junior engineers. This option has fixed cost of $45,000 and variable-cost probabilities of .3 for $.55 each, .4 for $.50 and .3 for $.45

b) Subcontract: A medium-cost approach using good outside design staff. This approach would’ve a fixed cost of $65,000 and variable-cost probabilities of .7 of $.45, .2 of $.40, and .1 of $.35.

c) High Tech: A high tech approach using extremely best of the inside staff and latest computer aided design technology. Fixed cost of $75,000 and variable cost probabilities of .9 of $.40 and .1 of $.35.

What is the best decision based on the expected monetary value (or EMV) criterion? (We want the lowest EMV as we’re dealing with cost in this problem).

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M914556

Have any Question? 


Related Questions in Operation Management

Discuss the roles of the legislative judicial amp executive

Discuss the roles of the legislative, judicial & executive branches. Include how they are intertwined within one another, & how each influences your role as HRM.

Do you think that a distinction should be drawn between

Do you think that a distinction should be drawn between religion and the other classes protected by the 1964 CRA, on grounds of mutability? The argument can be made that one could at hypothetically change an attribute su ...

Please explain how each department in a company could

Please explain how each department in a company could approach assessing customer expectations of a new product launch product. Describe how to use a TQM approach for fulfilling customer expectations associated with a ne ...

Livechat1 what is a hyptohesislivechat2 why is a business

LiveChat1: What is a hyptohesis? LiveChat2: Why is a business review so important? 100-150 word response

A virtual private network vpn supports a secure encrypted

A virtual private network (VPN) supports a secure, encrypted connection between a company’s employees and remote users through a third-party service provider.

1 how many feasible solutions are there in a linear program

1. How many feasible solutions are there in a linear program? Which ones do we need to examine to find the optimal solution? (DQ#8 p.705) 2. In the two videos this week regarding single and multi server queues, what are ...

How do you formulate manufacturing cost incurred vs

How do you formulate manufacturing cost incurred vs. manufacturing cost applied when given all this data for Durham Company who uses a Job order costing system to get the underapplied or overapplied overhead? This questi ...

In this module we describe several tools for monitoring

In this module, we describe several tools for monitoring projects, including checklists, spreadsheets, percent complete, tracking Gantt Charts, and earned value. a. Create a three-column table with each of these in the l ...

Michael has decided to invest 40000 in three types of funds

Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of 8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an annual return of 9 perce ...

In your educated opinion does plump n stuffy need to make

In your educated opinion, does Plump n' Stuffy need to make policy changes to ensure compliance with Title VII of the Civil Rights Act of 1964? Should there be changes to comply with the Age Discrimination in Employment ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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