Crib Sheet 1 - Matt Wallock Decision Tree both COSTS and...

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Matt Wallock Decision Tree – both COSTS and PROFITS Step one – map first move Step two – add nature Step three – add probabilities and payoffs Step four – extend calculations Step five – figure expected payouts Starts with decision node – then onto a state of nature node Between is the alternative, after is the state of nature EMV – weighted average of payoff for alternative EVPI = value under certainty – max EMV Equals the most a company should pay for perfect information Income Statement Sales-COGS = Gross Margin… - finance costs and taxes = contribution margin Eli Whitney – Interchangeable, standardized parts, musket contract with govt Frederick Taylor – personnel selection, planning scheduling and motion study Henry Ford – Assembly Line, paid employees very well Gilbreths – motion study, 12 kids Deming – taught Japan quality control methods Timeline: Cost Focus (1776) – Quality Focus (1980) – Customization Focus (1995) Productivity = (Units Produced)/(Input used) = X units per input
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This note was uploaded on 03/28/2008 for the course BUS 360 taught by Professor C.r.marshall during the Fall '07 term at Wisc Stevens Point.

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