Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
bartleby

Concept explainers

Question
Book Icon
Chapter 9, Problem 32P

a)

Summary Introduction

To identify: The strategy that would maximize the expected net earnings using precision tree.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

b)

Summary Introduction

To perform: The input that have the largest effect on the best solution.

Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.

Blurred answer
Students have asked these similar questions
The Dreamscape Production (DP)) is considering producing a pilot for a comedy series in the hope of selling it to a major television network.  The network may decide to reject the series, but it may also decide to purchase the rights to the series for either one or two years.  At this point in time, DP may either produce the pilot and wait for the network's decision or transfer the rights for the pilot and series to a competitor for P100 million.  DP's decision alternatives and profits (in millions of pesos) are as follows:                                                                                State of Nature      Decision Alternative               Reject, S1          1 Year, S2          2 Years, S3       Produce pilot, d1                          -100                       50                   150       Sell to competitor, d2                   100                      100                  100   The probabilities for the state of nature are P(S1) = 0.20, P(S2) = 0.30, and P(S3)…
A television station may either extend a current television show for another season or develop a completely new show for that time slot.   It will cost $6M to develop the new show.  The new show may be very successful, moderately successful, or not successful with associated advertising revenues of $25M, $15M, or $5M, respectively.    If the station chooses to extend the current show, it will cost $2M.  The extended show may be very successful, moderately successful, or not successful with associated advertising revenues of $15M, $10M, or $5M, respectively. Which of the following are true?   A. There are a total of six branches in the entire decision tree. B. There are eight leaves or terminal nodes in the entire decision tree. C. There is one event node in the decision tree. D. None of the above
Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property, it can then be sold for $155,000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $145,000. (a) What is the estimate of the probability Strassel will be able to obtain the property using a bid of $125,000? (Use at least 5,000 trials. Round your answer three decimal places.) (b) How much does Strassel need to bid to be assured of obtaining the property? $125,000 $135,000 $145,000 (c) Use the simulation model to compute the profit for each trial of…
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,