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Author Question: A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There ... (Read 41 times)

littleanan

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on: Dec 3, 2019
A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are three different mechanisms which can be installed in these "pets." These toys will sell for the same price regardless of the mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, is dependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand a forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in the table below.

DemandWind-up actionPneumatic actionElectronic action
Light$250,000$90,000-$100,000
Moderate400,000440,000400,000
Heavy650,000740,000780,000

Construct the appropriate decision tree to analyse this problem. Use standard symbols for the tree. Analyse the tree to select the optimal decision for the manufacturer.
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Marked as best answer by littleanan on Dec 3, 2019

shailee

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Reply #1 on: Dec 3, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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littleanan

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review

bigcheese9

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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