OPM Sheet

5 probabilty highest w eighted payoff m inimax regret

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Unformatted text preview: is out of statistical control. Variables – can be m easured (weigh length volume. Single ­factor (output/labor or m aterials or capital) Multifactor (output/labor+materials+overhead) or (output/labor+energy+capital) Total factor productivity (goods and services produced/all inputs used to produce them) 1. 200 Tire changes, 12 brake jobs, 32 alignments in an 8 hour day w ith 6 m echanics. Spet costs 16 p/h, a tire changer costs 8 p/h, alignment m echanic costs 14 p/h. M aterials cost for day w as 2,000 and overhead w as 500. Labor productivity (if retail price for respective service is 60, 150, 40) – (200*60 + 12*150 + 32*40)/(6*8) = 314.17, M ultifactor Productivity – (200*60 + 12*150 + 32*40)/(2*8*16)+(2*8*8)+(2*8*14)+2,000+500) Guitar, 100 produced, 80% can be sold. Sell for 250 each. 10 of labor per guitar. Employee w orks 160 hours a m onth. Labor is 10/hour/ m aterials is 40/guitar, overhead is 4,000. Labor productivity = (250*80)/(10*100)=2. M ultifactor = (250*80)/(10*10*100 + 40*100 + 4,000)=1.11 DUU. M aximin – w orst payoff in each row row , then choose best. Best of those rows. M aximax rule – best payoff in Row. Best of those rows. Laplace rule – assign each event .5 probabilty, highest w eighted payoff. M inimax Regret – best decision in column subtract other decisions. Add rows/choose lowest. Break even – (fixed cost)+(variable cost*quantity) = (revenue per unit sold * quantity). Pq=F+cQ. Q=F/(p ­c). Pq ­(F+cQ) Procedure offer at 200 per patient. Fixed cost 100,000, variable costs of 100 per patient. W hat is break even quantity. 100,000/(200 ­100) = 1000 patients Forecast w as 1,500 patients w hat w ould profit be per year? Pq – (f + cq) = (200*1500) – (100,000+(100*1500))=50,000. Fb = fixed cost per year of buy option. Fm= fixed cost of m ake option. Cb = variable cost (per unit)of buy option. Cm = varia ble cost of m ake option. Q less than or equal to (Fm  ­Fb)/(Cb ­Cm) (Make) Fixed costs at 12,000 and variable costs total 1.50 per salad. (Buy) buy at 2.00 salad, fixed costs 2,400)(12,000 ­2,400)/(2.0 ­1.5)= 19,200 salads is break even point. 25,000 m ade then BUY 2,400+(2*25,000)=52.400 M AKE 12,000+(1.5*25,000)=49,500. Choose m ake option. a=optimistic time, m – m ost likely time, b – pessimistic time. M ean – Te=(a+4m+b)/6, variance is ((b ­a)/6)^2. To calculate probability that event w ill occur w ithin given time period (variable X – critical path)/sq.root of variance. R ­chart is for variability. X – chart is to see output, on average, consistent w ith target values and past performance. Crash cost per period = (crash cost...
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