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

Analyze the major differences between marriott

Analyze the major differences between Marriott international and Starwood Hotels and Resorts before and after the merger. Show differences in Chart form.

1 what were your initial thoughts on eq2 what was your

1. What were your initial thoughts on EQ? 2. What was your biggest challenge or trouble when it came to implementing your EQ strategy. 3. Give me your best strategy that you used and excelled in. 4.Have you noticed any c ...

The systematic approach to training involves needs

The systematic approach to training involves needs assessment, program design, implementation, and evaluation.

Need done as soon as possible taking test right now our

Need done as soon as possible taking test right now. Our home construction company still buys nails in 15-pound boxes but now we use an average of 2690 boxes a year. Preparing an order and receiving a shipment of nails i ...

1 why should construction organizations go through the

1. Why should construction organizations go through the effort of doing projections and budgets? 2. Explain the concept of sustainable competitive advantage and why it is important. 3. Explain what a surety looks for in ...

In what ways does a commitment benefit an organizationhow

In what ways does a commitment benefit an organization? How can knowledge of individual differences improve productivity and employee morale? Provide examples.

Process design amp supply chain evaluation -select a

Process Design & Supply Chain Evaluation - Select a company with which you are familiar. This could be your place of employment, a place you would like to work, or a business you frequent. Create a 14-slide presentation ...

Ikea case studynbsp as part of your reading for this unit

IKEA Case Study  As part of your reading for this unit, you read the "IKEA Aims to Pay a Living Wage" case study on page 391 of  Fundamentals of Human Resource Management . Respond to the two questions below in a 2-3 pag ...

1 which are the motivations theories which are considered

1. Which are the motivations theories which are considered as process theories.  2. What are some of the ethical questions facing businesses globally today? Why does it matter how business is done in other countries? 3. ...

Integrating operations management with financial

Integrating Operations Management with Financial Management 1. Identify and discuss how an enterprise management system integrates operations management and financial management within the context of an existing and veri ...

  • 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