2875 words 12 pagesDECISION SUPPORT MODEL Instructor: DR.DO BA KHANG
CASE ABSTRACT 2 1/ Prepare a decision tree for the initial problem 2 2/ Do you agree with Mr. Dhawan’s analysis in Exhibit 3? 4 3/ Prepare a decision tree to include the different possible delivery dates of the embroider. Interpret the results. 5 4/ Prepare a decision tree to describe the situation with parallel production process 7 5/ Assuming that Mr. Dhawan can hire an assistant who would make sure that there will be no internal production problem. How much he would pay for this assistant at most? 8 6/ Do you have any other suggestion to help Dhawan to improve further his situation with the order? 10 …show more content…
2. 40 percent chance hat Pioneer would pay 30 percent of the contracted price. Thus, the revenue is: 30%*$493, 400= $148,020 less than the qualifying minimum of 150,000 INR, the order not qualified for Government incentives. 3. 20 percent chance hat Pioneer would pay 20 percent of the contracted price. Thus, the revenue is: 20%*$493, 400= $98,680 less than the qualifying minimum of 150,000 INR, the order not qualified for Government incentives.
As the results, in the event that shipping date was missed (late delivery) 60 percent Mr. Dhawan (paid 30% and paid 20%) will not receipt of Government incentives. With Mr. Dhawan’s analysis Exhibit 3, we understand that he certainly received the Government incentives in all pay-less events: If on- time delivery occurred, he received the Government incentives of $281,238 and in case of late delivery occurring, he received the Government incentives of $101,246. It is not realistic. 3/ Prepare a decision tree to include the different possible delivery dates of the embroider. Interpret the results. We begin the tree plan with 2 scenarios: accept and decline. If Dhawan declines the order, he will lose 10% for investing materials (188,400 INR x 10% = 18,840 INR) . “ He reasoned that the investment of 188,400 INR was not really significant because, even though embroidered cloth could only be sold for about 65 % of cost, unembroidered cloth and the other materials could always be resold for 90% of their respective