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- The remaining part of the case and question below : Fortunately, shipboard emergencies are infrequent, but when they do occur they are problematic. For instance, the Costa Concordia hit a rock and sank off Italy, causing32 people to die. A generator fire on the Carnival Triumph stranded 4000 passengers for four days. Sporadically, viruses causing diarrhea and vomiting strike cruise ships, causingCarnival to take an infected ship out of service to eradicate all traces of the virus by sanitizing virtually every object on board.Although these incidents are costly, the cruise industry has a fatality rate three times better than airlines. Economic Issues Spending for a cruise is generally considered discretionary. During recessions, people are more apt to take shorter cruises and to embark from nearby ports rather than flying to faraway points of departure. Interestingly, however, in comparison with other segments of the tourist industry, cruise lines have fared well during economic…Classify the following risks into variation, foreseen uncertainty, unforeseen uncertainty, and chaos:a. A hurricane on the U.S. East Coast floods a regional warehouse destroying alarge amount of stockThe International Organization for Standardization is the first globally recognized standard related to risk management: a) True b) False
- A new digital device is expected to have a typical sales profile with a projected life-span of 12 months, and expected peak sales of 1 k units/month. What will the potential percentage loss in sales be, if the device is delayed getting to market by 1 months. 56% 46% 66 76%Q11) In the visual-fit method, the cost analyst visually fits a straight line through a plot. Select one: True FalseMinimax Regret CONTRACT 400u 500u 700u 900u SIZE 300u 1,500 1,200 600 500u 900 600 400 700u 300 400 800 800u 200 600 1000 Worst Regret for: 300u = 1,500 500u = 900 700u = 800 800u = 1,000 : Show computation
- Explain or define each of these terms:d. Expected value of perfect information14. Digital Controls, Inc. (DCI) manufactures two models of a radar gun used by police to mon- itor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the smaller model B has an accuracy of plus or minus 3 miles per hour. For the next week, the company has orders for 100 units of model A and 150 units of model B. Although DCI purchases all the electronic components used in both models, the plastic cases for both models are manufactured at a DCI plant in Newark, New Jersey. Each model A case re- quires 4 minutes of injection-molding time and 6 minutes of assembly time. Each model B case requires 3 minutes of injection-molding time and 8 minutes of assembly time. For next week the Newark plant has 600 minutes of injection-molding time available and 1080 min- utes of assembly time available. The manufacturing cost is $10 per case for model A and $6 per case for model B. Depending upon demand and the time available at the Newark plant, DCI…Rick Wing, salesperson for Wave SolderingSystems, Inc. (WSSI), has provided you with a proposal forimproving the temperature control on your present machine.The machine uses a hot-air knife to cleanly remove excess solder from printed circuit boards; this is a great concept, butthe hot-air temperature control lacks reliability. According toWing, engineers at WSSI have improved the reliability of thecritical temperature controls. The new system still has the foursensitive integrated circuits controlling the temperature, butthe new machine has a backup for each. The four integratedcircuits have reliabilities of .90, .92, .94, and .96. The fourbackup circuits all have a reliability of .90.a) What is the reliability of the new temperature controller?b) If you pay a premium, Wing says he can improve all fourof the backup units to .93. What is the reliability of thisoption?
- A work team is looking at a current product in the LUML catalog --- the L555X fixture. The L555X was introduced about 2 years ago; is a pretty good seller; seems to meet customer needs (virtually no complaints and few returns); and should be in production for several more years. No major changes in capability are planned. However, LUML is interested in improving the profits from the product. Marketing opines that the L555X is fairly priced given the competition and L555X’s capabilities. One option to try to increase profits is to raise the price (revenue) while holding the production expenses constant. Marketing believes that the L555X has a typical demand curve; and an increase in price will lead to a decrease in sales volume and lower overall revenue. On January 13, the team analyzed the current design and identified 63 parts in the L555X. On January 27 and 28, the team met with the industrial engineering department. Together they were able to identify 108 interfaces in the L555X.…A machine has three types of components named Cl, C2, C3. The following table shows the quantity and failure rate of cach component. Conceptual design enforces machine to have mean corrective maintenance time of 45 minutes. Predict mean corrective maintenance times for the components. Prove that your prediction is compatible with machine's mean corrective maintenance time. Component C1 C2 C3 Quantity Failure rate (per hour) 0.3 1.5 0.41. There are two approaches to the implementation of ERM, namely the measurement driven approach and the process-control approach. What is the focus of the measurement driven approach in implementing ERM? 2. Write a small paragraph on the concept of maximum foreseeable loss (MFL) and its significance in risk management. Question 2 1. Distinguish between the.'Maximin', 'Maximax·• and the 'Minimax regret' decision strategy. 2. Determining the size or quantum of a possible loss provides a backdrop against which efforts to manage the risk can be measured .Highlight the measures used to enhance the description of possible loss more accurately