S1-1. Telecomp is a U.S.-based manufacturer of cellular telephones. It is planni
ID: 400885 • Letter: S
Question
S1-1. Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, Poland, or Mexico. The cost of the facility will differ between countries and will even vary within countries depending on the economic and political climate, including monetary exchange rates. The company has estimated the facility cost (in $ millions) in each country under three different future economic/political climates as follows. **TABLE ATTACHED *****!!!!!!!!!!!!!!!! ) Determine the best decision using the following decision criteria. (Note that since the payoff is cost, the maximax criteria becomes minimin and maximin becomes minimax.) a) Minimin b) Minimax c) Hurwicz (? = 0.40) d) Equal likelihood
S1-2. A global economist hired by Telecomp, the U.S.-based computer manufacturer in Problem S1-1, estimates that the probability that the economic and political climate overseas and in Mexico will decline during the next five years is 0.30, the probability that it will remain approximately the same is 0.40, and the probability that it will improve is 0.30. Determine the best country to construct the new facility in and the expected value of perfect information.
Explanation / Answer
Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services). The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officers to highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time. According to the U.S. Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principles of general management, manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning[1][2][3]. Management, including operations management, is like engineering in that it blends art with applied science. People skills, creativity, rational analysis, and knowledge of technology are all required for success. Management branches Finance Human resources Information technology Marketing Operations/production Strategy Other Management areas Accounting Association Capability Change Communication Conflict Construction Cost Crisis Critical Customer relationship Distributed Earned value Educational Engineering Environmental Facility Hospital Information Innovation Interim Inventory Knowledge Land Logistics Lifecycle Marine fuel Materials Office Perception Practice Program Project Process Performance Product Public administration Quality Records Resource Restaurant Risk Skills Strategic Stress Supply chain Systems Talent Time Technology Management-related topics Association of Technology, Management, and Applied Engineering Applied engineering Business school Chartered Management Institute Decision making styles Organization development Organizational studies Social entrepreneurship Forecasting Leadership Articles Adhocracy Administration Certified Business Manager Collaboration Collaborative method Corporate governance Decision Making Engineering management Evidence-based management Executive Pay Forecasting Futures studies Growth Knowledge visualization Leadership Management consulting Management control Management cybernetics Management development Management fad Managerial Psychology Management science Management styles Management system Managerialism Micromanagement Macromanagement Middle management Music management Organizational behavior management Organizational studies Predictive analytics Team building Scientific management Senior management Social entrepreneurship Virtual management Williamson's Model of Managerial Discretion Peter Drucker's management by objectives Eliyahu M. Goldratt's Theory of constraints Pointy Haired Boss
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