5.1 data: Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. product alpha has annual sales of 1000 units and a contribution of $2,500; it is in the introductory stage. product bravo has annual sales of 1,500 units and a contribution of $3,000; it is int the growth stage. Product Charlie has annual sales of 3,500 and a contribution of $1,750; it is in the decline stage. *See that attached image*Use the data in solved problem 5.1 to examine what happens to the decision if Sarah King can increase all of design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added manufacturing cost of $250,000. Prepare the modified decision tree. What are the pay-offs, and which branch has the greatest EMV. is for 100,000 units.bability of yielding 60 goodability of yielding 65 goodcost $1,000,000.bability of yielding 64 goodof yielding 59 good units per0.cost $75. Each good moni-s are destroyed and have noal costs in this problem.EMV = $575,000102-12/21 579Design ADesign Berminethe payoff associated with each branch. The resulting tree isshown in Figure 5.14.ervices SelectionFor design A:e analysis for the follow-For design B:EMV(design A) = (.9)($500,000) + (.1)($1,250,000)= $575,000=(.9)EMV(design B)Mean Yield 60(.8)($750,000) + (.2)($0)$600,000The highest payoff is design option B, at $600,000.(.1)Mean Yield 65(.8)wilsuaMean Yield 64(.2)EMV = $600,000) Mean Yield 59-=Sales 60,000 at $150Mfg. cost 100,000 at $75Design cost6mbris Sales 65,000 at $150Mfg. cost 100,000 at $75Design costthe problem may be solved with POM for Windows and/or Excel OM.5Sales 64,000 at $150Mfg. cost 100,000 at $75Design costto sSales 59,000 at $150Mfg. cost 100,000 at $75Design cost$9,000,000-7,500,000-1,000,000$500,000$9,750,000-7,500,000-1,000,000$1,250,000$9,600,000-7,500,000-1,350,000$750,000$8,850,000-7,500,000-1,350,0000the life cycle, identify a reasonable operations strategy foeach:

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Answered: Prepare a product-by-value analysis for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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5.1 data:

Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. product alpha has annual sales of 1000 units and a contribution of $2,500; it is in the introductory stage. product bravo has annual sales of 1,500 units and a contribution of $3,000; it is int the growth stage. Product Charlie has annual sales of 3,500 and a contribution of $1,750; it is in the decline stage. *See that attached image*

Use the data in solved problem 5.1 to examine what happens to the decision if Sarah King can increase all of design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added manufacturing cost of $250,000. Prepare the modified decision tree. What are the pay-offs, and which branch has the greatest EMV.