Access over 20 million homework documents through the notebank

Get on-demand Q&A homework help from verified tutors

Read 1000s of rich book guides covering popular titles

Anonymous

**Purpose of Assignment**** **

This assignment has two cases. The first case is on expansion strategy. Managers constantly have to make decisions under uncertainty. This assignment gives students an opportunity to use the mean and standard deviation of probability distributions to make a decision on expansion strategy. The second case is on determining at which point a manager should re-order a printer so he or she doesn't run out-of-stock. The second case uses normal distribution. The first case demonstrates application of statistics in finance and the second case demonstrates application of statistics in operations management.** **

**Assignment Steps**** **

**Resources: **Microsoft Excel^{®}, Bell Computer Company Forecasts data set, Case Study Scenarios

**Write** a 1,050-word report based on the Bell Computer Company Forecasts data set and Case Study Scenarios.

**Include** answers to the following: (**note answers the case study with grading guide**)

Case 1: Bell Computer Company

- Compute the expected value for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of maximizing the expected profit?
- Compute the variation for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of minimizing the risk or uncertainty?

Case 2: Kyle Bits and Bytes

- What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?

**Format** your assignment consistent with APA format. **WITH THEER REFERENCES**

Purpose of Assignment
This assignment has two cases. The first case is on expansion strategy. Managers constantly have to
make decisions under uncertainty. This assignment gives students an opportunity to use the mean
and standard deviation of probability distributions to make a decision on expansion strategy. The
second case is on determining at which point a manager should re-order a printer so he or she
doesn’t run out-of-stock. The second case uses normal distribution. The first case demonstrates
application of statistics in finance and the second case demonstrates application of statistics in
operations management.
Resources Required
•
•
•
Microsoft Excel®
Bell Computer Company Forecasts data set
Case Study Scenarios
Grading Guide
Content
Met
Partially
Met
Not Met
3
#/3
Partially
Met
Not Met
Comments:
Write a 1,050-word report based on the
Bell Computer Company Forecasts data
set and Case Study Scenarios.
Case 1: Bell Computer Company
Compute the expected value for the profit
associated with the two expansion
alternatives. Which decision is
preferred for the objective of
maximizing the expected profit?
Compute the variation for the profit
associated with the two expansion
alternatives. Which decision is preferred
for the objective of minimizing the risk or
uncertainty?
Case 2: Kyle Bits and Bytes
What should be the re-order point? How
many HP laser printers should he
have in stock when he re-orders from
the manufacturer?
Writing Guidelines
The paper—including tables and graphs,
headings, title page, and reference page—is
Met
Comments:
Writing Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
2
#/2
5
#/5
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
Low
Demand Medium
High
Medium-Scale
Large-Scale
Expansion Profits
Expansion Profits
Annual
Annual
Profit
Profit
($1000s)
($1000s)
P(x)
P(x)
50
20%
0
20%
150
50%
100
50%
200
30%
300
30%
Expected Profit ($1000s)
Risk Analysis for Medium-Scale Expansion
Annual Profit
(x)
Probability
P(x)
(x - µ)2 (x - µ)2 * P(x)
Demand $1000s
(x - µ)
Low
50
20%
Medium
150
50%
High
200
30%
σ2 =
σ=
Risk Analysis for Large-Scale Expansion
Annual Profit
(x)
Probability
P(x)
(x - µ)2 (x - µ)2 * P(x)
Demand $1000s
(x - µ)
Low
0
20%
Medium
100
50%
High
300
30%
σ2 =
σ=
Case Study – Week 3 Individual Assignment
QNT/561 Version 9
Case Study – Bell Computer Company
The Bell Computer Company is considering a plant expansion enabling the company to begin production
of a new computer product. You have obtained your MBA from the University of Phoenix and, as a vicepresident, you must determine whether to make the expansion a medium- or large- scale project. The
demand for the new product involves an uncertainty, which for planning purposes may be low demand,
medium demand, or high demand. The probability estimates for the demands are 0.20, 0.50, and 0.30,
respectively.
Case Study – Kyle Bits and Bytes
Kyle Bits and Bytes, a retailer of computing products sells a variety of computer-related products. One of
Kyle’s most popular products is an HP laser printer. The average weekly demand is 200 units. Lead time
(lead time is defined as the amount of time between when the order is placed and when it is delivered) for
a new order from the manufacturer to arrive is one week.
If the demand for printers were constant, the retailer would re-order when there were exactly 200 printers
in inventory. However, Kyle learned demand is a random variable in his Operations Management class.
An analysis of previous weeks reveals the weekly demand standard deviation is 30. Kyle knows if a
customer wants to buy an HP laser printer but he has none available, he will lose that sale, plus possibly
additional sales. He wants the probability of running short (stock-out) in any week to be no more than 6%.
Copyright © 2017 by University of Phoenix. All rights reserved.
1
...

Purchase answer to see full attachment

Purchase answer to see full attachment

Please, let me know in case of anything

Running Head: EXPANSION STRATEGY AND REORDER POINT

Expansion Strategy and Reorder Point

Name

Institutional Affiliation

1

EXPANSION STRATEGY AND REORDER POINT

2

Case 1: Bell Computer Company

Before the initiation of any project, evaluation has to be made to determine the best way

to undertake the project. The evaluation involves the various factors that ought to be considered

before commencing on the implementation process. The projects profits and demand levels of

each scale of expansion ought to be determined and comparatively evaluated to establish the best

step to take within the company (Anderson, Sweeney, Williams, Camm, & Cochran, 2015).

Hence, as the Vice-President of Bell Computer Company, there is need to decide on the effective

expansion scheme to adopt, either as a large- or medium- scale project. The success of the

company in implementing the plant expansion for the production of a new computer product is

dependent on the decision I will make as the Vice-President based on computation analysis of

the stated scenarios. Computation analysis is viable in highlighting the best project to adopt...

Review

Anonymous

Top quality work from this tutor! I’ll be back!

Anonymous

Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous

Thank you! Reasonably priced given the quality

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors