Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
13th Edition
ISBN: 9780135225899
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Question
Chapter A, Problem 7DQ
Summary Introduction
To define: Expected Value of Perfect Information (EVPI)
Introduction: Decision tree is one of the methods used indecision-making process. It would graphically represent the available alternatives and states of nature. It would also mention the payoffs and probabilities of the alternatives. It helps to choose the best alternative that would give the best result among the alternatives.
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Question 4
A report that could include number of cars which were returned in a month because of serious defects is:
Key-indicator report
Scheduled report
Demand report
Exception report
Which of the following is not a benefit of risk mapping and prioritisation?
Question 5 options:
Risk maps are key graphical representations of the variance in risk appetites across different divisions within an organisation.
Ranking risks by their level of severity helps an organisation determine the optimal allocation of resources devoted to risk response or treatment.
Helps the organisation identify how certain risks can offset other risks to ensure that the enterprise maintains an overall risk profile that remains within risk capacity.
The results help an enterprise to communicate better its risk aggregated risk profile to key external stakeholders.
QUESTION 3
(Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small
inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking
decision) and states of nature (size of crowd). What is the Expected Value of Perfect Information (EVPI)?
PROFIT ($)
Average
Crowd
$50,000
$70,000
.50
Alternatives
Large Inventory
Small Inventory
Probability
*
A) $68,400
B) $78,400
C) $10,000
D) -$20,000
O E) $51,500
Large
Crowd
$220,000
$90,000
.20
Small
Crowd
-$2,000
-$5,000
30
Chapter A Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
Ch. A - Prob. 1DQCh. A - Prob. 2DQCh. A - Prob. 3DQCh. A - Prob. 4DQCh. A - Prob. 5DQCh. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQCh. A - Prob. 8DQCh. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ
Ch. A - Question 11. The expected value criterion is...Ch. A - Question 12. When are decision trees most useful?Ch. A - Given the following conditional value table,...Ch. A - Prob. 2PCh. A - Prob. 3PCh. A - Jeffrey Helm owns a health and fitness center...Ch. A - Prob. 5PCh. A - Prob. 6PCh. A - Prob. 7PCh. A - Prob. 8PCh. A - Prob. 9PCh. A - Prob. 10PCh. A - The University of Miami bookstore stocks textbooks...Ch. A - Palmer Jam Company is a small manufacturer of...Ch. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 23PCh. A - Prob. 13PCh. A - Prob. 24PCh. A - Prob. 25PCh. A - Prob. 26PCh. A - Philip Musa can build either a large video rental...Ch. A - Prob. 14PCh. A - Prob. 29PCh. A - Prob. 15PCh. A - Prob. 16PCh. A - Prob. 17P
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