Will and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?
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Will and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?
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- Telephone poles, once installed in a location, remain in useful service until one of a variety of events occur. (a) Name three reasons why a telephone pole might be removed from useful service at a particular location. (b) You are to estimate the total useful life of telephone poles. If the pole is removed from an original location while it is still serviceable, it will be installed elsewhere. Estimate the optimistic life, most likely life, and pessimistic life for telephone poles. What percentage of all telephone poles would you expect to have a total useful life greater than your estimated optimistic life? (c) What is an environmental life cycle assessment (LCA)? How do treated wood, metal, and concrete poles compare?Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships’ employees. Dealerships need only pay for their employees’ time and travel to ADP headquarters, where they attend “Software U” at no additional charge. Discuss the specialized investments (if any) made by an automobile dealership, its employees, and ADP—and identify a potential vulnerability that a dealership faces under this arrangement.The president of AS Electronics, Inc., has two design options for his new line of cathode ray tubes (CRTs). The forecast for the CRTs is 100,000 units annually. The company will make 100,000 units using one of the two designs at a cost of $75 each. Good CRTs can be sold, but bad CRTs are destroyed and have no salvage value. (Ignore any disposal cost issues for the moment.) The company can sell good CRTs for $150. Design option A has a .90 probability of yielding 59 good CRTs per 100 and a .10 probability of yielding 64 good CRTs per 100. The design will cost $1,000,000. Design option B has a .80 probability of yielding 64 good CRTs per 100 and a .20 probability of yielding 59 good CRTs per 100. The design will cost $1,350,000. Draw and label the decision tree (for two design options with two possible yields each). Calculate the first-year payoff for each option. [Payoff = Annual Revenues – annual manufacturing costs – design costs] Calculate the expected payoff for each of the…
- Statement of the Problem and Solutions Rollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand, as also improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors. Capacity at Southwest is measured in seat miles, and even a single minute reduction in aircraft turnaround time system wide means…a company intends to offer a new service to some of its internal customers. Briefly discuss how the fact that the customers are internal would change the process of managing the four phases of the service life cycle.DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their automated machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. Each time the machine breaks down, the firm loses an average of $3,000 in time and repair expenses. If preventive maintenance were implemented, it is estimated that an average of only one breakdown per week would occur. The cost of preventive maintenance is $1,000 per week. Number of breakdowns per week 0 1 2 3 4 Frequency (Number of weeks that breakdowns occurred) 8 3 5 9 5 What is the weekly total maintenance cost of this program? Given the following data, find the expected breakdown cost. The cost per breakdown is $200. Number of breakdowns per week 0 1 2 3 4 Weekly frequency 5 12 10 18 5 13) Great Southern Consultants Group's computer system has been down several times over the…
- CEO John Spychalski is concerned about a problem that has existed at CBN railroad for almost 20 years now. The continuous problem has been that the locomotives used by the company are not very reliable. Even with prior decisions to resolve the problem, there still has not been a change in the reliability of these locomotives. Between 2013 and 2014, 155 new locomotives were purchased and one of CBN's repair shops was reno- vated. The renovated shop has been very inefficient. Spychalski estimated that the shop would complete 300 overhauls on a yearly basis, but instead it has only managed to com- plete an average of 160 overhauls per year. The company has also been doing a poor job servicing customers (that is, providing equipment). CBN has averaged only 87 to 88 percent equipment availability, compared to other railroads with availability figures greater than 90 percent. Increased business in the rail industry has been a reason for trying to reduce the time used for repairing the…You have two design options for your new line of high-resolution monitors for Computer-Aided Design (CAD)workstations. The production run is for 110,000 units. Design option A has a .90 probability of yielding 65good monitors per 100 and a .10 probability of yielding 70good monitors per 100. This design will cost $1,000,000. Design option B has a .80 probability of yielding 65good units per 100 and a .20 probability of yielding 60good units per 100. This design will cost $1,350,000. Good or bad, each monitor will cost $75. Each good monitor will sell for $150. Bad monitors are destroyed and have no salvage value. We ignore any disposal costs in this problem. Demonstrate how decision trees can be used in order to choose the design option based on the above situation. Calculate the expected monetary value (EMV) of each option and determine which option you will propose.: You are employed by Univeristy of Gujrat , a university that provides a range of training and education, including Computing, and Information & Communication Technology (ITC). The Head of Department of ITC, Mr Rumi, has discovered that on more than one occasion recently a computer virus has been introduced to the computers in the department. He thinks that the viruses have been introduced from computer disks brought in by students. He has decided to introduce a system where all disks used in the department must be checked for a virus before they can be put into the computers. He says to you, I would like you to send a memo in my name to all teachers who use the computer rooms. You will have to tell them that all disks brought in by students must be checked before there are used. The teachers have to check them carefully, of course. We have got to stop these viruses being introduced before they cause serious problems. Oh yes, reminds them to lock up the rooms when they leave.…
- In addition to a product guarantee, should a manufacturer have a service guarantee?Eric Andrews has been investigating the possibility of starting a service that willpartner with grocery stores to provide a delivery service for their customers. The idea is that after purchasing their groceries, customers could go to a kiosk in the store, pay a small fee, and have their groceries delivered to their homes within60 minutes. Which of the five forces in Porter’s five forces model do you anticipate will most strongly affect Eric’s potential business and why?A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative S1 S2 Purchase, d1 590 -160 Do not purchase, d2 0 0 If the probability that the rezoning will be approved is 0.5, what decision is recommended?Recommended decision: What is the expected profit?Expected profit: $ fill in the blank 2 The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while learning more…