Answered You can buy a ready-made answer or pick a professional tutor to order an original one.
This assignment has two cases. The first case is on expansion strategy. Managers constantly have to make decisions under uncertainty.
Purpose of Assignment
This assignment has two cases. The first case is on expansion strategy. Managers constantly have to make decisions under uncertainty. This assignment gives students an opportunity to use the mean and standard deviation of probability distributions to make a decision on expansion strategy. The second case is on determining at which point a manager should re-order a printer so he or she doesn't run out-of-stock. The second case uses normal distribution. The first case demonstrates application of statistics in finance and the second case demonstrates application of statistics in operations management.
Assignment Steps
Resources: Microsoft Excel®, Bell Computer Company Forecasts data set, Case Study Scenarios
Write a 1,050-word report based on the Bell Computer Company Forecasts data set and Case Study Scenarios.
Include answers to the following:
Case 1: Bell Computer Company
- Compute the expected value for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of maximizing the expected profit?
- Compute the variation for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of minimizing the risk or uncertainty?
Case 2: Kyle Bits and Bytes
- What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?
Format your assignment consistent with APA format.
Click the Assignment Files tab to submit your assignment.
- @
- 165 orders completed
- ANSWER
-
Tutor has posted answer for $30.00. See answer's preview
**** ** **** Computer ********** **** Computer ******* has *** ********* ******** ****** scale *** ***** scale *** **** ****** ***** ********* *** ***** ***** ********* ****** *** ** *** medium ** **** **** *********** ** ** ** *** 03 respectively *** medium scale ********* ******* ** **** ** *** medium *** **** ****** *** ****** ******* and ******* ************ *** ***** ***** ********* ******* ** **** ** *** medium *** high ****** *** ** $100000 *** ******* respectively Management ** ****** dilemma ******* ** go for medium ***** ********* ** large ***** expansion While ***** scale ********* *** ********* to ******** ****** ****** ** **** ** **** ****** *** ***** ***** ********* will generate ***** ****** **** medium ***** ********* in case ** *** *** ****** ****** In **** ** *** ****** *** ***** ***** expansion ******* ** *** profit Clearly *********** ********* ***** **** risk **** *** low-scale ************** ******** ***** ** an *********** value of ** ****** An ****** *** ******** possible ******** ***** ** **** to ********* *********** ** occurrence of each outcome The ******** ***** is ********** by multiplying **** ******** ******** ** probability ** ********** ** that outcome *** ****** *** ***** ****** ******** ***** Expected value ** ****** scale ********* and ***** scale ********* will help *** ********** choose *** ********* ****** **** is most ****** ** ******** ****** profit The ******** ***** ** two ************ ********** scale ********** $145Large ***** ********** ********* ****** ***** ********* *********** has ****** ******** value than *********** ********* project Thus ************ expansion ** preferred *** *** ********* ** maximizing ******** ************** ******* ******** ***** ** not ****** ** **** ** ******** ******** ** is also important to **** how profits can ******* **** *** ******** ***** *** **** ******* ******** ** used Variance measures *** *** * *** ** random ****** *** ****** from *** **** value Higher ******** ***** *** ****** ****** *** ****** far from *** **** A *** ******** is ************ variance ** ****** variables is the expected ***** ** ******* ********* **** the ****************** ******** ** ******** ****** variables is ********** ****** * ********** * ∑[P(X)* **************** 2014) The variance ** ************ *** large-scale ********* projects are:Medium-scale ********** *************** expansion: 12400 The variation *** profit ********** with *********** ********* ** **** ****** **** *** ********* *** ****** ********** with medium-scale ******************* ********* ** * ******* of **** ******** ********* is * ******* **** ** quantify *** amount ** ********* ** a set ** **** ****** ******** ********* ** ********** ** square **** of ******** *** ******** ********* ********* **** ****** ****** **** to ** close to *** ******** ***** A lower ******** ********* ********* ***** **** *** * higher ******** ********* ********* higher ********* ******** deviation ** ************ *** large-scale expansion ******** **************** ********** 52202Large-scale ********** ************* value ** standard ********* ** medium-scale ********* ********* **** medium-scale ********* ******* ** less ***** **** *** *********** expansion ******* ** ************ ********* ******* ** ********* *** the ********* ** ********** *** **** ** ****************************** ************ expansion ******* *** ****** ******** ***** and lower **** **** management ****** ****** ************ ********* project Case 2: Kyle Bits and ********* Bits *** ***** is a ******** ** ********* ******** Kyle’s **** ******* ******* ** an ** ***** ******* For this ******* ******* ****** ****** is *** ***** and **** time ** one **** However demand is *** constant Kyle has observed **** ****** ****** standard deviation ** ** **** need to know when should they place order *** ******* point) *** ********* ***** ** **** there is ********* ** **** ** *** **** to fulfill ** ***** *** to stock-out Kyle will **** **** **** *** ******** ********** **** **** has *** ******* ********** *********** of ********* ** *** **** ** 6% **** **** ****** Kyle ***** ** **** what should ** *** ******** point *** how **** ** laser printers ****** ** ** ************** ***** ** *** ********* ***** ** ***** ***** ****** ** ****** ** **** case demand is ******** *** ******** ****** ** ** ******* that ****** can ** described ** * normal ************ The ******* ****** *** *** lead **** ** *** sum ** average daily ****** for the ****** of **** in **** **** period **** can ** ********** ** *********** ******* ***** ****** by *** **** **** *** ******** ** *** ************ ** ********** ** the *** ** ***** variance *** *** ****** of **** ** lead timeThus reorder ***** * * dL * *************** = ******* daily demandL * lead ****** * Standard ********* ** ***** ******* = ****** of ******** ********** corresponding ** *** ******* ***** probability(Russell & ****** ************ = ***** ****** * * ****** * 30/7Maximum ******** *********** ** stock *** ** ** ** ***** service level ** ******** ******* corresponding z- value is *********** * ******* ******* ***** R = ********* * 156*(30/7)* **** * *** + **** * ******* Kelly’s **** ***** ** order when ********* ***** ******* *** *********** ****** ** ******** there is ****** ** ******** *** ***** **** ******** *** ***** ****** *** need **** I **** ***** ** maintain ****** ***** to ***** *** risk ** ***** *** *** safety ***** ** *** ********** inventory * **** ********* above expected ****** to ***** stock out ***** *** service ***** ** determine ****** ***** A firm ******* what *********** ** *** ****** ** stock *** *** service ***** ** *********** ** ** stock out ****** **** **** **** probability ** ****** service level ******** & ****** 2011) For ******* * ******* ***** ** *** ***** ***** ** *** *********** that firm **** **** demand during **** **** ** ***** the probability ** stock out is ********* ***** ** ********** ********* ***** * z*σ*√LL * lead ****** * ******** ********* ** ***** ******* * Number ** ******** ********** corresponding ** *** ******* ***** *************** this ***** * * ****** * 30/7Maximum accepted *********** ** ***** *** ** ** ** means ******* ***** ** ******** ******* ************* ** value ** *********** * ******* ****** stock ************ **** * **** * 18 ********* Kelly’s should maintain ** ***** ****** stock of ** laser ******* ** avoid ***** *******************
