Homework:Homework 2 (Module A)

Question 3, Problem A.9

Part 1 of 3

HW Score: 60%, 12 of 20 points

Points: 0 of 3

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Part 1

Zhu Manufacturing is considering the introduction of a family of new products. Long-term demand for the product group

is somewhat predictable, so the manufacturer must be concerned with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom manufacturing, or she can invest in group technology. Zhu won't be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four compartments: poor, fair, good, and excellent. The table below indicates the payoffs (profits) associated with each process/demand combination, as well as the probabilities of each long-term demand level:

O Points Mancung dering the duction of any of new products. Long-tudomander the product group www.mahermed with the risk of chocoing app ay hula Volperster She can choose who que luchdog. Du wote wand will she makes the process choice Demand wil beste o computer portar, podando och pecand combowls te beachten an den Demand Poor Fer Good Probe 010 0.00 30 030 Boch - 3100.000 31.200.000 51.400.000 $1.200.000 200,000 50.000 700.000 190.000 Gold - 1900 -3500.000 $9.00 Al the meat provides Duterte y