The fabrication department of ACE Manufacturing Company would like to find out the most cost effective (optimal) production order quantity per production run of a part used in its assembly department. This part has a constant annual demand of 2,000 units per year. The production rate in the fabrication department for this part is 100 units per day and the consumption rate in the assembly department for this part is 75 units per day. Setup cost in the fabrication department for this part is $5 per production run. Carrying (holding) cost for this part is $2 per unit per year. Based on these information and using the Production Run (Production Lot Size) Model, the most cost effective (optimal) production order quantity per production run (units per order) for this part is

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u. s. government's e find the expected value of perfect information about the u. s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.