The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales.According to the table, how many yachts should be built?
Answer(s): C
To achieve the maximum expected profit, 30 yachts should be built. For each level of production, multiply the probability of demand by the expected profit. The computation for the maximum is:0.1 -US $10) + 0.2 $10) + 0.5 $30) + 0.2 $30) = US $22.
All of the following are useful for forecasting the needed level of inventory except:
Answer(s): B
Forecasts are the basis for business plans. Models are used in the forecasting process to make decisions that optimize future results. Internal accounting allocations of costs to different segments of the company are arbitrary assignments of already incurred costs that do not have anything to do with forecasting demand. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
Using the information collected, the organization should focus on:
Complaints based on lack of user knowledge and hardware problems are by far the most frequent according to this chart. Consequently, the company should devote its resources primarily to these issues. An organization has collected data on the complaints made by personal computer users and has categorized the complaints. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
The chart displays the:
Answer(s): D
This Pareto diagram depicts the frequencies of complaints in absolute terms. It displays the actual number of each type of complaint. The chart does not display arithmetic means, relative frequencies, or medians of each type of complaint.
A Gantt chart:
A Gantt or bar chart is sometimes used in conjunction with PERT or CPM to show the progress of a special project. Time is shown on the horizontal axis, the length of a bar equals the length of an activity, and shading indicates the degree of completion. However, the Gantt chart is not as sophisticated as PERT or CPM in that it does not reflect the relationships among the activities or define a critical path.
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