Omis 5120 Solutions Assignment 1

OMIS5120 Introduction to Quantitative Methods Solutions to Individual Assignment examination 1 [pic] Optimal scheme: Prepare proposal and submit bid. If they win, lease excavation and refreshful process, with an anticipate Monetary Value of $142000. move 2 [pic] Optimal dodge: Settle out of court, with an expect Monetary Value of $600,000. Question 3 a) Standard ride Deluxe Model ProductionProduction Prob solicit60008000 ProbDemand2000four hundred0 0.36000cccK250K0.26000 one hundred fiftyK150K 0.78000300K400K0.88000150K300K EMV300K355KEMV150K250K b)For the current resolvent, we reach the following equation ( $355,000 = 0.3 * $250,000 + 0.7 * $400,000 ( 355K = p * 250K + (1-p) * 400K ( 355 = 250p + 400 400p For what cherish of p will the optimal solution vary (from 355K to 300K) ( 300 = 250p + 400 400p ( 300 400 = 250p 400p ( -100 = -150p ( p = 100/150 = 2/3 or 0.67 Consequently, Fo r p < 0.67, the optimal solution is to line of battle 8000 For p >= 0.

67, the optimal solution is to order 6000 c) Now, wide-cut output capacity is limited and, so, production levels cannot be goaded on an individual basis ( See next page for decision direct and compend Question 4 a)Conditional cost (, $K) Event Action No takeSmall Stockpile giving Stockpile No conquer 0 20 50 Partial Strike 50 20 50 heart Strike 200 120 (100+20) 50* b)Weig hted Costs (, $K) ProbEvent ! Action No StockSmall StockLarge Stock 0.6No Strike 0 12 30 0.3Partial Strike 15 6 15 0.1Total Strike 20 12 5 Total Expected Cost 35 30K 50...If you want to overhear a sufficient essay, order it on our website: BestEssayCheap.com

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