HW7 (blank) - Brittany Braud Management 368 Homework 7 June...

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Brittany Braud Management 368 Homework 7 June 20, 2011 1. Chapter 9 - # 6: The design and effective capacities for a local emergency facility are 300 and 260 patients per day, respectively. Currently, the emergency room processes 250 patients per day. What can you conclude from these figures?
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2. Chapter 9 - # 10 Spectrum Hair Salon is considering expanding its business, as it is experiencing a large growth. The question is whether it should expand with a bigger facility than needed, hoping that demand will catch up, or with a small facility, knowing that it will need to reconsider expanding in three years. The management at Spectrum has estimated the following chances for demand: The likelihood of demand being high is 0.70. The likelihood of demand being low is 0.30. Estimated profits for each alternative are as follows: Large expansion has an estimated profitability of either $100,000 or $70,000, depending on whether demand turns out to be high or low. Small expansion has a profitability of $50,000, assuming that demand is low.
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HW7 (blank) - Brittany Braud Management 368 Homework 7 June...

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