Multiple questions

Instructions

Answer questions 2, 4, and 6 from chapter three of the Kumar text. A successful response will fully answer each question. Please make sure you document your work and provide sufficient explanations on how you got to each answer.

This assignment is worth 50 points. Question 1 is worth 10 points and questions 2 & 3 is 20 points each.

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2.  Distinguish between design capacity and system capacity.

4. A manufacturer of TV watches uses three TRS7 electronic chips in each TV watches produced. Demand estimates for the number of TV watches that could be sold next year are shown

Demand   X

20000

40000

50000

P (X)

0.30

0.50

0.20

(a) Assuming the firm decides to produce on an expected value basis, how many TRs7 chips should they plan to produce for next year’s sales?

(b) What capacity is required to meet 150 percent of expected demand?

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