Due to the war in Ukraine, wheat manufacturing plants in Sudan are considering various options to
streamline
their manufacturing processes. Currently, the business expects to make a revenue of USD 160 000. TIMVO , a
business development firm, has been contracted to observe the manufacturing process and has listed the
following possible suggestions.
a. Continue to operate at the current capacity.
b. Upgrade the entire operating machinery for USD 8000. If implemented successfully , an increase
in revenue of USD 210 000 is expected . If unsuccessful an increase in revenue of USD 80 000 is
expected. The probability of success is 0.6.
c. Upgrade the machinery partially focusing only on essential machinery, costing USD 4000. If
implemented successfully the expected revenue would be expected to be USD 190 000 and if
unsuccessful revenue would be USD 40 000. The probability of successful implementation is 0.8
Given this information determine the best course of action for the business to undertake And comment on your find

Question

24-06-2024
Mathematics

Answered

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Due to the war in Ukraine, wheat manufacturing plants in Sudan are considering various options to
streamline
their manufacturing processes. Currently, the business expects to make a revenue of USD 160 000. TIMVO , a
business development firm, has been contracted to observe the manufacturing process and has listed the
following possible suggestions.
a. Continue to operate at the current capacity.
b. Upgrade the entire operating machinery for USD 8000. If implemented successfully , an increase
in revenue of USD 210 000 is expected . If unsuccessful an increase in revenue of USD 80 000 is
expected. The probability of success is 0.6.
c. Upgrade the machinery partially focusing only on essential machinery, costing USD 4000. If
implemented successfully the expected revenue would be expected to be USD 190 000 and if
unsuccessful revenue would be USD 40 000. The probability of successful implementation is 0.8
Given this information determine the best course of action for the business to undertake And comment on your find

Sagot :

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