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5 disciplines from which business management borrows concepts
The cost of the development project is $500,000. The probability of successful development is projected to be 70%. If the development is unsuccessful, the project will be terminated. If it is successful, the manufacturer must then decide whether to begin manufacturing the product on a new production line or a modified production line. If the demand for the new product is high, the incremental revenue for a new production line is $1,200,000, and the incremental revenue for the modified production line is $850,000. If the demand is low, the incremental revenue for the new production line is $700,000, and the incremental revenue for the modified production line is $150,000. Consider that the cost of developing a new product line is $300,000 and for the modified product line is birr $100,000. The probability of high demand is estimated as 40%, and of low demand as 60%
a. Draw up an appropriate decision tree for the given project.
b. What strategy maximizes the project’s expected profit?
A dispatcher for a City’s Taxi Association has five taxi cabs at different locations and four customers who have called for transportation service. The distance (in km) from each taxi’s present location to each customer is shown in the following table.
Cab Customer I II III IV A 7 2 4 10 B 5 1 5 6 C 8 7 6 5 D 2 5 2 4 E 3 3 5 8 a. Determine the optimal assignment that will minimize the total distance travelled. b. Compute the total minimum distance of the optimal assignment. c. If customer III remains to be unavailable due to unexpected case, what will be the revised set of assignment.
The doctor advises a patient visited him that the patient is weak in his health due to shortage of two vitamins, i.e., vitamin A and vitamin D. He advises him to take at least 40 units of vitamin A and 50 units of Vitamin D every day. He also advises that these vitamins are available in two tonics X and Y. Each unit of tonic X consists of two units of vitamin A and three units of vitamin D. Each unit of tonic Y consists of four units of vitamin A and two units of vitamin D. Tonic X and Y are available in the medical shop at a cost of Birr three per unit of X and Birr 2.50 per unit of Y. The patient has to fulfill the need of vitamin by consuming X and Y at a minimum cost.
a. Formulate the primal linear programming model for the patient’s problem and solve the problem using the simplex method
b. Indicate the range over which objective function coefficient of basic decision variables can change without changing their optimal values.
Domestic cows can be bought for $200 each but Hybrid cows cost $500 each. The domestic cows produce 30 gallons of milk per week and the Hybrid ones produce 50 gallons of milk per week. A gallon of milk can be sold for $3. A cow costs $100 per week to feed. If the financial constraint is to spend $8000 for cows and the capacity constraint is that total number of cows to be bought cannot exceed 20 cows. Formulate a linear programming model for this problem, and find the optimal combination of domestic and hybrid cows that maximize the total profit earned using the graphic Method
a) Mr. David borrowed RM125,000 to buy a car. His loan cost was 12% and he promised to repay the loan in 15 equal annual payments. How much is the principal outstanding after the first loan payment?
b) Puan Elly is planning to retire in 20 years, and she plans to begin withdrawing RM50,000 annually at that point of time. She is expected to live for 20 years following her retirement. If she can earn 9% compounded annually, how much does she need to save each year to prepare for her financial needs after her retirement? (Total 10 marks)
c) Rafael Corporation expects to receive RM20,000 per year for 10 years and RM35,000 per year for the next 10 years. What is the present value of this cash flow given 12% discount rate? (Total 5 marks)
In a particular locality, there is a shortage of face mask. The residents of the place and the healthcare frontliners continue to accommodate the unprecedented challenge of the coronavirus outbreak. Many of the settlers do not have adequate protection against the pandemic. As an entrepreneur , what do you think will be a potential business that could address the need? Who will be your target market?
Four observers determine the moisture content of samples of a powder, each man taking a sample from each of six consignments. Their assessments are given below: Observers Consignments 1 2 3 4 5 6 1 2 3 4 9 12 11 12 10 11 10 11 9 9 10 11 10 11 12 14 11 10 11 12 11 10 10 10 Discuss whether there is any significant difference between consignments. (Useful data: Ftab(5,15):2.96, Ftab(3,15):3.29)
1. Hill photographic studio. The following assets were invested in the enterprise; cash, 3500, accounts Receivable 950 supplies 1200; and photographic equipment 15000. There were no liabilities transferred to the business.
v March 1. Paid 2400 on for 3 moths office rent
v March 4. Purchased photographic equipment on account for 2500
v March 5. Received 850 from credit customers
v March 6. Paid 125 for advertisement( Miscell.exp)
v March 10. Paid 500 to settle March 4 debt
v March 13. Paid 575 for two weeks’ salary
v March 16. Received 1,980 from sale of service
v March 20. Paid 650 for supplies purchase
v March 27. Paid 575 for two weeks’ salary
v March 31. Paid 69 for telephone bill for the month
v March 31. Paid 175 for electric bill for the month
v March 31. Received 1870 from sales of service
v March 31. Make sales on account for 1,675.
v March 31. Hill withdrew 1500 for her personal use
v March 31. Recorded depreciation on photographic equipment @ 1%
v Journalize transactions
Give your understanding of a good research design. Is single research design suitable in all research
studies? If not, why?
