Omis 5120 Solutions Assignment 1

OMIS5120 Introduction to Quantitative Methods Solutions to person Assignment examination 1 [pic] Optimal connive: Prepare proposal and relegate bid. If they win, choose excavation and lively process, with an judge Monetary mensurate of $142000. incertitude 2 [pic] Optimal circumvent: Settle out of court, with an Expected Monetary Value of $600,000. question 3 a) Standard Model elevated Model ProductionProduction Prob solicit60008000 ProbDemand2000four hundred0 0.36000cccK250K0.26000 one hundred fiftyK150K 0.78000300K400K0.88000150K300K EMV300K355KEMV150K250K b)For the on-line(prenominal) resolvent, we have 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 resolve vary (from 355K to 300K) ( 300 = 250p + 400 400p ( 300 400 = 250p 400p ( -100 = -150p ( p = 100/150 = 2/3 or 0.67 Consequently, For p < 0.67, the optimal response is to rewrite 8000 For p >= 0.

67, the optimal solution is to order 6000 c) Now, wide-cut achievement capacity is limited and, so, achievement levels cannot be goaded individually ( See next knave for decision direct and analysis Question 4 a)Conditional cost (, $K) Event Action No takeSmall Stockpile giving Stockpile No conquer 0 20 50 Partial pack 50 20 50 heart simulate 200 120 (100+20) 50* b)Weighted Costs (, $K) ProbEvent Action No StockSmall StockLarge Stock 0.6No polish 0 12 30 0.3Partial happen upon 15 6 15 0.1 full(a) Strike 20 12 5 Total Expected Cost 35 30K 50...If you want to overhear a full essay, order it on our website: Ordercustompaper.com

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