Farmer McCoy can plant either corn or soybeans. The probabilities that the next harvest prices will go up, stay the same, or go down are 0.25, 0.30 and 0.45 respectively. If the prices go up, the corn crop will net $30,000 and the soybeans will net $10,000. If the prices remain unchanged, McCoy will (barely) break even. But if the prices go down, the corn and soybeans crops will stain losses of $35,000 and $5,000, respectively.
(a) Represent McCoy's problem as a decision tree
(b) Which crop should McCoy plant?
Answers: 1
Business, 22.06.2019 13:10, Hannahdavy5434
Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?
Answers: 3
Business, 22.06.2019 19:00, lonelynomad00
Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
Answers: 2
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