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QNT561 Week 3 Expansion Strategy and Establishing a Re-Order Point- Bell Computer Case

12/08/2020 Client: accounting123 Deadline: 10 Days

  


Purpose of Assignment 


This assignment has two cases. Select one of the two cases for this assignment.  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 500-word report based on the case you selected: Bell Computer Company Forecasts data set and Case Study Scenarios. 


Include answers to the following: 


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?

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