4. A job shop has received an order for high precision formed parts. The cost of...
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4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043 4. A job shop has received an order for high precision formed parts. The cost of producing each part is estimated to be $65,000. The customer requires either 8, 9, 10 parts be supplied. Each good part sold will produce revenue of $100,000. However, if fewer than 8 good parts are produced, none will be purchased; if more than 10 parts are produced the excess will not be purchased. The probability of an individual part being acceptable equals 0.86. The expected profits for batches quantities of 10, 11, and 12 and their probabilities of losing money are shown below. Of the three choices, which is the best preferred? Why? Support your answer. # Good Parts (x) 0 123456 7 8 9 10 11 12 # Parts produced (Q) 10 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.11 0.26 0.36 0.22 0.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.04 0.13 0.28 0.34 0.19 0.00 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.06 0.15 0.29 0.32 0.17 # Good Parts (x) 0 1 2 3 4 5 6 7 8 9 10 11 12 Expected Profit Probability of losing # Parts produced (Q) 11 10 12 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 -650,000 -715,000 -780,000 150,000 85,000 20,000 250,000 185,000 120,000 350,000 285,000 285,000 220,000 0 285,000 220,000 0 0 220,000 109,518 176,020 176,020 0.1518 0.0546 0.0175 The production department believes it can increase the probability of an individual part being acceptable to 0.90. Which is the impact on your decision now? Which is the optimal batch size now? Support your answer. See the new expected profit and probability of losing above. (15 points). Expected Profit 202,325 230,952 202,886 Probability of losing 0.0702 0.0185 0.0043
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Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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