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  • GSLC 2 Strategi Operasi Design of Prodcuct N Service

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    sherly tan
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    The document discusses two options for a company's new product: (1) immediately begin production with an existing prototype or (2) conduct further analysis first. For option 1, sales are expected to be 100,000 units at $550 each with a 60% chance, or 75,000 units with a 40% chance. For option 2, sales are expected to be 75,000 units at $750 each with a 70% chance, or 70,000 units with a 30% chance, at an analysis cost of $100,000. The document determines that option 2 has the highest expected monetary value.

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    GSLC 2 STRATEGI OPERASI DESIGN OF PRODCUCT N SERVICE

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    The document discusses two options for a company's new product: (1) immediately begin production with an existing prototype or (2) conduct further analysis first. For option 1, sales are expected to be 100,000 units at $550 each with a 60% chance, or 75,000 units with a 40% chance. For option 2, sales are expected to be 75,000 units at $750 each with a 70% chance, or 70,000 units with a 30% chance, at an analysis cost of $100,000. The document determines that option 2 has the highest expected monetary value.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    32 views2 pages

    GSLC 2 Strategi Operasi Design of Prodcuct N Service

    Uploaded by

    sherly tan
    The document discusses two options for a company's new product: (1) immediately begin production with an existing prototype or (2) conduct further analysis first. For option 1, sales are expected to be 100,000 units at $550 each with a 60% chance, or 75,000 units with a 40% chance. For option 2, sales are expected to be 75,000 units at $750 each with a 70% chance, or 70,000 units with a 30% chance, at an analysis cost of $100,000. The document determines that option 2 has the highest expected monetary value.

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    © All Rights Reserved
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    of 2

    TUGAS GSLC-2 DESIGN OF PRODUCT AND SERVICES

    Sherly 2201810584
    LF21

    MacDonald Products, Inc., of Clarkson, New York, has the option of

    (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just
    completed prototype testing or
    (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds
    with the existing prototype

    (option a), the firm can expect sales to be 100,000 units at $550 each, with a probability of .6,
    and a .4 probability of 75,000 at $550. If, however, he uses the value analysis team

    (option b), the firm expects sales of 75,000 units at $750, with a probability of .7, and a .3
    probability of 70,000 units at $750. Value analysis, at a cost of $100,000, is only used in option
    b.

    Which option has the highest expected monetary value (EMV)?


    Option b has the highestexpected monetary value (EMV)

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