Question: Please help in answering the following questions 4. AlwaysRain Irrigation. Inc. would like to determine capacity requirements for the next four years. Currently. two production
Please help in answering the following questions




4. AlwaysRain Irrigation. Inc. would like to determine capacity requirements for the next four years. Currently. two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, ISO-degree nozzle sprinklers, and Boil-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEm't' Dew-mo l (lb: (005) 2 (IN NOS) 3 (IN (Ills) 4 (IN (Kills) Plastic 90 I 44 55 56 Plastic 180 15 16 l7 18 Plastic 360 50 55 64 67 Bronze 90 7 8 9 10 Bronze 180 3 4 5 6 Bronze 360 11 12 15 18 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require twu operators and can produce up to 12111) sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years? (Assume that there is no learning.) 5. Suppose that KlwaysRain Irrigation's marketing department will undertake an _ intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is YEARLY DEMAND 1mm) 2(tN0tJOs) 3(IN0005) 4(1N0005) Plastic 90 32 44 55 56 Plastic 18C 15 16 17 18 Plastic 36C 50 55 64 67 Bronze SC 11 15 18 23 Bronze 180 6 5 6 9 Bronze 360 15 16 17 20 What are the capacity implications ofthe marketing campaign (assume no learning)? 6. In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that adequate capacity is available? 7. Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently. AlwaysRain has 10 such employees. in anticipation of the ad campaign described in problem 5. management approved the purchase of two additional bronze machines. What are the labor requirement implications? 8. Expando. Inc. is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The rst is a small facility that it could build at a cast of $6 million. If demand for new products is low. the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high. it expects $ 12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $9 million. Were demand to be low. the company would expect $10 million in discounted revenues with the large plant. If demand is high. the company estimates that the discounted revenues would be $14 million. In either case. the probability of demand being high is .40. and the probability of it being low is 0.60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Expando make the best decision. 9. A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four hornes per acre. but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help. the decision process has been reduced to the following costs. alternatives. and probabilities: Cost of land: 52 million. Probability of rezoning: 0.60. If the land is rezoned. there will be additional costs for new roads. lighting. and so on of 5] million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center. there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost. which excludes the land; and there is a 30 percent chance that she can sell it to an insurance company for $5 million over her construction cost (also excluding the land). If. instead of the shopping center. she decides to build the 1.500 apartments. she places probabilities on the prots as follows: There is a 60 percent chance that she can sell the apartments to a real estate investment corporation for $3.000 each over her construction cost; there is a 40 percent chance that she can get only $2,000 each over her construction cost. (Both exclude the land cont.) If the land is not rezoned, she will comply with the existing zoning restrictions and simply build 600 homes. on which she expects to make $4.000 over the construction cost on each one (excluding the cost of land). Draw a decision tree of the problem and determine the best solution and the expected net prot
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