Wk 3 Expansion Strategy and Establishing a Re-Order Point -...

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Running head: EXPANSION STRATEGY AND ESTABLISHING A RE-ORDER1Expansion Strategy and Establishing a Re-Order PointAthena FalconerQNT/561 - Applied Business Research & Statistics May 15, 2017University of PhoenixDerek BlytheMHAI1MEJW8
EXPANSION STRATEGY AND ESTABLISHING A RE-ORDER2Expansion Strategy and Establishing a Re-Order PointDecisions can be notoriously difficult when working with bigger corporations. Because one is invested in making the best possible decision for the company, one must use not only objective reasoning but more importantly data statistics analysis. "Statistics are a vital source of evidence as they provide us with clear, objective, numerical data on important aspects" (n.a., 2010). The following information will provide data statistic annalistic to two cases to expansion strategies and operation management decisions.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" (Case Study Scenarios, 2014). Based upon data given; the decision to make an expansion a medium or large scale project is highly important. The Bell Computer Company has two development choices: medium scale, and expansive scale. For both medium scale extension and substantial scale development, the request can be low, medium, or high with the likelihood of 0.2, 0.5, and 0.3 individually. Based upon calculations, medium scale development benefits, if there should be an occurrence of low; medium and appealare $50,000, $150,000 and $200,000 individually. For substantial scale, extension benefits if there should be an occurrence of low, medium, and appeal are $0, $100,000 and $300,000 individually. The administration is facing predicament whether to go for medium scale extension or huge scale development. While substantial scale development can produce higher benefit if there should arise an occurrence of appeal, the vast scale extension will lower benefits than that of medium scale extension in the event of a low and medium request. If there should arise an occurrence of low request, the extensive scale development brings about nil benefit.

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