Requirements: Everyone will be given the same case study but with different data, which you will write a management report on. The report will be based on your Excel analysis. The report has to be understandable as a standalone piece of work without referring to the Excel file. You need to provide tables and figures from the Excel analysis to support your report.
Word limit of the report is 1500 words. The data for each individual is posted in the Excel spreadsheet along with the assignment brief.
The Russo Manufacturing company
The Russo Manufacturing Company must decide whether to manufacture a component part at its Milan plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. If the demand for the finished product is low, Russo will incur a loss of
[i.] if it decided to manufacture the component part. On the other hand, if Russo purchases the component part, it will not incur any production cost and the profit is estimated to be
[ii.] when the demand of the finished product is low. In a better scenario when demand for the finished product is high, Russo will earn
[iii.] if it manufactures the component part in house, or
[iv.] if it purchases the part. Finally, when demand for the finished product is at medium level, Russo will earn [v.] profit if it manufactures the component part, or
[vi.] if the part is purchased from a supplier.
Originally the management estimate the probability of weak demand to be
[vii.] and of strong demand to be
[viii.]. However, the management is concerned about the accuracy of this estimation and is contemplating of conducting extra market research to determine the likelihood of different states of demand. The cost of the research is
[ix.] and the research can indicate if market condition is favorable or unfavorable. The research is fairly reliable, meaning it is more likely to obtain a favorable result if the demand for the finished product is truly high. On the other hand, the report will be less likely to generate a favorable result if the demand for the finished product is truly low. The probabilities of obtaining a favorable report given a certain market condition are:
P (F | low demand) = [x.]
P (F | medium demand) [xi.]
P (F | high demand) = [xii.]
Perform an analysis of the problem facing Allied Insurance and prepare a report that summarizes your findings and recommendations. Be sure to address the following issues:
a. Optimistic Approach (5 marks)
b. Conservative Approach (5 marks)
c. Minimax Regret Approach (5 marks)
Computation of the posterior probabilities of weak demand, medium demand and strong demand given the market research is conducted. Briefly explain the meaning of these probabilities. (5 marks)
A decision tree illustrating the decisions and events that Russo is facing. All the payoffs, probabilities and decision at each step need to be labelled carefully on the tree. (25 marks)
A recommendation whether the market research should be undertaken. Explain clearly the reasons for your recommendation.
(10 marks)A decision strategy that Russo should follow if they take the recommended action in 5. (10 marks)
A sensitivity analysis to illustrate how differ
A sensitivity analysis to illustrate how different decisions change if the prior probability of [xiii.] change by 0.1 at a time. (20 marks)
Presentation (10 marks)
The report must be written in a clear manner and including the required items. There is no need to restate the questions in your report. Your report must have the following structure:
Give an overview of the problem, the solutions and the recommendation
Introduce the case study and the objectives of the report
This section addresses all the questions associated with the case study.
Conclude the case study and present your recommendations to the board of directors based on the analysis.
Why Choose Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
Customer Support 24/7
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission and Business Papers
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Editing and Proofreading
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.