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

1 what are some of the ways that skull candys size and

1. What are some of the ways that skull candy's size and growth rate that influence its development process ? 2. How would you characterize skull candy's new product development team structure ? 3. What are the advantage ...

Each question should have a 1 page typed response direct

Each question should have a 1 page (typed) response. Direct copying of the text, websites, or other sources is not acceptable. There are 6 questions on the exam. Questions 1 -5 count 16 points each. Question 6 counts 20 ...

Pivot analysis projectin this project you will create pivot

Pivot Analysis Project In this project you will create pivot tables and pivot charts to analyze sales, customer and product data. Cleanse the data Open Pivot Analysis Raw Data and save it as Pivot Analysis your name comp ...

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 ...

Explain why the following statement is often true the

Explain why the following statement is often true: "The Achilles' heel of the entire evaluation process is the appraisal interview itself."

You are the general manager at the city center hotel sarah

you are the general manager at the city center hotel. sarah is a new manager in your housekeeping department. she is aware that your hotel has a collective bargaining agreement with a union. sarah decides to revamp the w ...

This weeks readings focus on trends in hr metrics and

This week's readings focus on trends in HR metrics and workforce analytics. These two elements are driving the HR industry. 1. Discuss whether the current HR degrees are adequately preparing HR professionals to successfu ...

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 ...

Each module has a set of review questions to assist you in

Each module has a set of review questions to assist you in learning the materials and help you prepare for the final exam. Spend quality time responding to the following questions in your own words. Explain the purpose o ...

Assignment performance managementyou are the hr manager for

Assignment: Performance Management You are the HR manager for an upscale retail store which sells clothing, shoes, handbags, and other accessories. Due to the economic downturn, the company has experienced a significant ...

  • 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