A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Gasoline Availability Investment Shortage Stable Supply Surplus Motel $-8,000 $15,000 $20,000 Restaurant 2,000 8,000 6.000 Theater 6,000 6,000 5,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz (a .4) e. Equal likelihood 3.
Q: George Johnson recently inherited a large sum of money; he wants to use a portion of this money to…
A: Maximize Z = 0.05B + 0.3S Subject to B >= 0.8(B+S) Bond Fund Minimum Investment 0.05B…
Q: Formulate a system of equations for the situation below and solve. Mr. and Mrs. Garcia have a…
A: Let S = amount invested in stocks Let B = amount invested in bonds Let M = amount invested in…
Q: ADVERTISING -OPTIMAL SOLUTION
A: Decision Variables- Let x1 = No. of Radio spots to be purchased x2 = No. of TV…
Q: A firm offers three different prices on its products, depending upon the quantity purchased. Since…
A: Decision variables - x11= product 1 with a profit of $18 per unit x12= product 1 with a profit of…
Q: George Johnson recently inherited a large sum of money; he wants to use a portion of this money to…
A: In case of a linear program the general mathematical model as well as the linear objective function…
Q: Gotham City Hospital serves cases from four diagnostic-related groups (DRGS). The profit…
A: Let i = 1 be the diagnostic services, 2 is a bed day service, 3 is a nursing care use and 4 is drugs…
Q: The demand equation for the BWS Bluetooth wireless loudspeaker is p = −0.05x + 145 where x is the…
A: the equilibrium quantity of 1000 units equilibrium price $95
Q: George Johnson recently inherited a large sum of money; he wants to use a portion of this money to…
A: B = percentage of funds invested in the bond fund S = percentage of funds invested in the stock…
Q: The Fairwinds Development Corporation is considering taking part in one or more different…
A:
Q: Brandon is considering expansion of a store. If he expands, the interest rate at which he borrows…
A: The decision tree has been represented as shown in the diagram.
Q: Calculate the breakeven point for each product? Calculate contribution ratio for each product 3.…
A: Break even point is the point of no profit no loss. It is the point where the company is able to…
Q: The Morton Supply Company produces clothing, footwear, and accessories for dancing and gymnastics.…
A: Let ‘x’ be Model 1 shoe. Let ‘y’ be Model 2 shoe. Let ‘z’ be Model 3 shoe. The objective is to…
Q: A company is considering three different capacities for the new distribution center they want to…
A: Decision tree is used in decision making when there are uncertainty of event occurrence. There are…
Q: A firm offers three different prices on its products, depending upon the quantity purchased. Since…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: Al, Barbara, Carol, and Dave have joined together to purchase two season tickets to the Giants’ home…
A: As there is tie in 1st preference, keeping the allocation fair allot the second most preferred game…
Q: How to solve descision tree using Analytical Solver for the assignment below Chelsea Bush is an…
A: a) Chelsea should run in the NH essential. On the off chance that she progresses admirably, at that…
Q: Spencer Enterprises is attempting to choose among a series of new investment alternatives. The…
A: Let, x1= Limited Ware house expansion (1 if it is selected, 0 otherwise)x2= Extensive Ware house…
Q: Formulate an LP model for the following problems. 1. Bernadette intends to invest up to ₱50,000 in…
A: The question is related to Linear programming technique and is of maximization.
Q: Considering the equations shown in figure below as constraints. Determine the optimum solution of…
A: Note: - Since we can answer only up to 3 subparts, we will answer subpart a, b, and c for your…
Q: George Johnson recently inherited a large sum of money;he wants to use a portion of this money to…
A: (a) In the linear program the general mathematical model and the linear objective function set of…
Q: A company imports goods at two ports: Philadelphia and New Orleans. Shipments of one product are…
A: Decision variables: Let , A , D ,C And B are the Customers and P and N are the Suppliers…
Q: The AC company decides to open a new factory to satisfy increasing demand. They already have four…
A: Logistics management is described as the process or means of seamlessly moving raw materials, parcel…
Q: The produce manager at the local Pig & Whistle grocery store must determine how many pounds of…
A: The Expected Monetary Value concept is taken for decision analysis. For each option, the pay-off are…
Q: Alexis Harrington received an inheritance of $95,000, and she is considering two speculative…
A: A small introduction about investment A venture is a resource or thing procured fully intent on…
Q: 3. The comptroller of Microsoft Corporation has $100 million of excess funds to invest. She has been…
A: Given data: investment funds = 100 mn rate of return - stocks and bonds probabilities
Q: Rand Enterprises is considering a number of investment possibilities. Specifically, each investment…
A: Formulas Model:
Q: Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West…
A:
Q: A firm offers three different prices on its products, depending upon the quantity purchased. Since…
A: Objective Functions and Constraints: Based on the given details, we found the…
Q: An investment advisor at RMC Financial Services wants to develop a model that can be used to…
A: x1 ,x2,x3 and x4 are corresponding ratio of stocks ,bonds, mutual funds and cash- x1+x2+x3+x4 = 1 x1…
Q: A project faces uncertainty about the number of users of the service to be provided. It might be 10,…
A: Hi There, Thanks for posting the question. Per Q&A guidelines, we must answer the first three…
Q: Your employer is trying to select from a list of possible capital projects. The projects, along with…
A: The process by which a business evaluates possible big projects or investments is known as capital…
Q: Based on the reading given above, answer the questions below: 1. What will be the effect of…
A: The organizations operating in the environment possess several obligations and responsibilities…
Q: Assume that the Wisconsin Cheese Factory currently operates a large facility in Madison, WI. The…
A: risk avoidance
Q: Federal Rent-a-Car is putting together a new fleet. It is considering package offers from three car…
A: The question is to minimize the cost of buying different types of cars. Let, F = Number of packages…
Q: Spencer Enterprises is attempting to choose among a series of new investment alternatives. The…
A:
Q: Steve Johnson believes that this winter is going to be extremely rainy, and he is trying to decide…
A: Please find the attached excel working in below step-
Q: Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver,…
A: Decision variable: Let the i be the type of room allotted to the different rental classes expressed…
Q: Bangs Leisure Chairs produces three types of hand-crafted outdoor chairs: sling chairs, Adirondack…
A: Objective Functions and Constraints: Based on the given details, we found the…
Q: Case Problem: Textbook Publishing ASW Publishing, Inc., a small publisher of college textbooks,…
A: Sales forecasting is the most common way of assessing future income by anticipating how many items…
Q: Formulate a system of equations for the situation below and solve. Cantwell Associates, a real…
A: Let x be the one-bedroom units y be the two-bedroom townhouses z be the three-bedroom townhouses…
Q: Alexis Harrington received an inheritance of $95,000, and she is considering two speculative…
A: a) Let L and C be the amount to be invested in Land and Cattle respectively. Max 1.2L+1.3C s.t. L+C…
Q: Given these values, what type of investment strategy would be selected by the Maximincriterion?
A: Maximin: The implementation is done by taking minimum of all values first and then taking the…
Q: Problem 5. Formulate the following situation as a linear optimization problem. Your company makes…
A: The above-given problem is of Liner optimization. Linear programming (LP, likewise called linear…
Q: Tuesday Wednesday 8. 14 Thursday 7 Friday 15 Saturday Sunday 18 The manager is considering several…
A: In the given question we are provided with the data of a famous Restaurant . In this question…
Q: An individual wishes to invest PhP 50,000 over the next year in two types of investment: Investment…
A: Below is the solution:-
Q: A car rental agency has a budget of $1.96 million to purchase at most 110 new cars. The agency will…
A: Solution Let X1 be the number of subcompact cars to be purchased and X2 be the number of mid-sized…
Q: George Johnson recently inherited a large sum of money; he wants to use a portion of this money to…
A: Let bond fund = x1 stock fund = x2 Max Z = 6% x1 + 10% x2 or Max Z = 0.06 x1 + 0.1 x2…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?The following payoff table provides profits based on various possible decision alternatives adn various levels of demand at Robert Klassan's print shop: decision low high alt 1 $10,000 $36,000 alt 2 $6,000 $38,000 alt 3 -$2500 $52,000 The probability of low demand is 0.40 whereas the probability of high demand is 0.60. a) The alternative that provides Robert the greatest expected monetary value is _________ The EMV for this decision is $_______ b) The expected value with perfect information (EVwPI)= $______ c) The expected value of perfect information (EVPI) for Robert= $________
- Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profit that would be realized during the next year for each of three investments alternatives Mickey is considering: State of Nature Decision alternatives Good Economy Poor Economy Stock market 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000 Probability 0.5 0.5 Compute decision would maximize expected profits. Compute the maximum amount that should be paid for a perfect forecast of the economy.1. Kirsten is trying to decide where to go for her well-earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping cost Motel cost Probability of bad weather Nevada $21.2 $80.9 0.2 Oregon $15.9 $84.6 0.4 California $30 $95 0.1 a. California, because its EMV = $33.14 b. Nevada, because its EMV = $33.14 c. California, because its EMV = $36.5 d. Any of the 3 choices. e. Oregon, because its EMV = $43.38 f. Nevada, because its EMV = $43.38 g. None of the 3 choices. h. Oregon, because its EMV is $36.50.20. The Video Game Supply Company (VGS) is deciding whether to set next year's production at 2000, 2500, or 3000 games. Demand could be low, medium, or high. Using historical data, VGS estimates the probabilities as: 0.4 for low demand, 0.3 for medium demand, and 0.3 for high demand. The following profit payoff table (in $100s) has been developed. Demand Production Target Low Medium High 2000 games 2500 games 3000 games 1000 1200 1400 800 1500 1300 600 1700 1400 (a) [1] What is the maximax decision alternative? (b) [1] What is the maximin decision alternative? (c) [2] Determine the expected value of each alternative and indicate what should be the production target for next year based on expected value. (d) [1] Determine the expected value with perfect information about the states of nature. (e) [1] Determine the expected value of perfect information.
- A firm must decide whether to construct a small, medium, or large stamping plant. A consultant’s report indicates a 0.20 probability that demand will be low and a 0.80 probability that demand will be high. If the firms builds a small facility and demand turns out to be low, the net present value will be $42 million. If demand turns out to be high, the firm can either subcontract and realize the net present value of S$42 million or expand greatly for a net present value of $48 million. The firm could build a medium size facility as a hedge: if demand turns out to be low, its net present value is estimated at $22 million; if demand turns out to be high, the firm could do nothing and realize a net present value of $46 million, or it could expand and realize a net present value of $50 million. If the firm builds a large facility and demand is low, the net present value will be -$20 million, whereas high demand will result in a net present value of $72 million. Analyze and prepare a…A manager is trying to decide whether to build a small,medium, or large facility. Demand can be low, average,or high, with the estimated probabilities being 0.25, 0.40,and 0.35, respectively.A small facility is expected to earn an after-tax net pres-ent value of just $18,000 if demand is low. If demand isaverage, the small facility is expected to earn $75,000; it canbe increased to medium size to earn a net present value of$60,000. If demand is high, the small facility is expected to earn $75,000 and can be expanded to medium size to earn$60,000 or to large size to earn $125,000.A medium-sized facility is expected to lose an estimated$25,000 if demand is low and earn $140,000 if demand isaverage. If demand is high, the medium-sized facility isexpected to earn a net present value of $150,000; it can beexpanded to a large size for a net payoff of $145,000.If a large facility is built and demand is high, earningsare expected to be $220,000. If demand is average for thelarge facility, the…Civil engineering consulting fi rms that provide ser-vices to outlying communities are vulnerable to a number of factors that affect the fi nancial conditionof the communities, such as bond issues and real estate developments. A small consulting fi rm en-tered into a fi xed-price contract with a large devel-oper, resulting in a stable income of $260,000 per year in years 1 through 3. At the end of that time, a mild recession slowed the development, so the par-ties signed another contract for $190,000 per year for 2 more years. Determine the present worth of thetwo contracts at an interest rate of 10% per year.