A Manager of a Manufacturing Enterprise Is Considering Whether to Produce

question 6

Essay

A manager of a manufacturing enterprise is considering whether to produce an intermediate good in house or to buy it from another firm. If the good is produced in house, three potential outcomes are possible: (i)if production is done in one shift, then expected profit is -$30 000 per year, (ii)if production is done in two shifts, then expected profit is $10 000, and (iii)if production is done in three shifts, then expected profit is $55 000. Probabilities associated with these outcomes were estimated as 35%, 45% and 20% respectively. However, if the good is purchased, two potential outcomes arise: (i)on-time delivery of the good results in $20 000 of expected profit, (ii)delays in delivery result in an expected loss of -$17 000. Probabilities of these outcomes are 60% and 40% respectively. Draw a decision tree, and execute it to make a decision.

Describe the necessary steps and procedural requirements for a valid assignment, including notification obligations.

Comprehend the implications of delegations, including the responsibilities and liabilities of parties involved.

Explore specific contractual clauses relevant to assignments and delegations, such as the Uniform Commercial Code (UCC) provisions.

Identify the differences between novation and other forms of contract modifications.

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Definitions:

Computer Hardware

The physical components of a computer system, such as the central processing unit (CPU), memory, hard drives, and peripherals.

Device Driver

A small piece of software that tells the operating system and other software how to communicate with a piece of hardware.

Computer Hardware

The physical components of a computer system, including the motherboard, CPU, RAM, and storage devices.

Operating System

The software that supports a computer's basic functions, such as scheduling tasks, executing applications, and controlling peripherals.