1. Price Discrimination - Two Parts Pricing: Xerox
In early days, the Xerox Corporation faced the following pricing problem for its copying machines (there was hardly any competition then). There were two segments of potential users, the large users --whose copying needs were 20,000 copies per year – and the small users -- whose copying needs were 2,000 copies per year. Xerox found that a large user would be willing to pay as much as $25,800 to buy a Xerox machine provided supplies from Xerox were free of charge over the life of the machine; similarly, a small user would be willing to buy a Xerox machine for $6,700 provided Xerox supplies free supplies. The expected life of a machine is 5 years. There are equal numbers of large and small users. The total number of users is 200.
Xerox's marginal cost of producing each of these machines was
estimated to be $1,900.
Its marginal cost of paper was $0.03 per sheet. Xerox used a 10%
discount rate, i.e., if it generated an income of $1 each year for
5 years, then its present value of that income stream is
1/1.10+1/1.102+...+1/1.105)=$3.79
(1) What should be the selling price of these machines (bundled with paper) if Xerox decided to go with single price (assume that everyone pays the same price and the buyers must pay immediately).
(2) Xerox wonders if it can make more money leasing the machines instead of selling them. The leasing policy will involve a yearly rental charge (payable at the end of each year) and a charge per copy made (monitored via the copy meter on the machines) -- cumulated over each year and payable at the end of the year. Only one leasing plan -- i.e., a single rental charge and a single per-copy charge -- is being contemplated. What should be Xerox's leasing policy? (Assume that each user also uses a 10% discount rate).
(3) Explain in a few words why the leasing plan does better than the single price plan?
In: Operations Management
What are some current challenges faced by food companies in reducing food waste?
In: Operations Management
The Following table is based on a time study for a metal working operation
| Obs (minutes per cycle) | |||||||
| Element | Performance Rating | 1 | 2 | 3 | 4 | 5 | 5 |
| A | 108% | 1.2 | 1.25 | 1.30 | 1.28 | 1.26 | 1.24 |
| B | 112% | 0.83 | 0.81 | 0.78 | 0.81 | 0.83 | 0.79 |
| C | 105% | 0.58 | 0.61 | 0.59 | 0.62 | 0.58 | 0.61 |
MUST SHOW ALL WORK TO RECEIVE FULL OR PARTIAL CREDIT.
a) Based on the number of observation, determine the standard time for the operation, assuming an allowance of 12 percent of job time.
b) How many observations would be needed to estimate the mean time for element B within 2 percent of its true value with a 95.5 percent confidence
In: Operations Management
Training and Development assignment.
Describe the usage of Computer Based Training (CBT) in McDonald's Company training programs.
Format
A i. McDonald's Company Background
ii. What type of CBT McDonald's use as program instruction and explain it
iii. Explain the advantages of using CBT.
iv. Describe the disadvantages of using CBT.
v. Discuss on the blending of CBT with other training methods
vi. Explain the types of CBT such as Program Instruction, Intelligent Tutoring Systems, Interactive Multimedia and Virtual Reality and give some examples.
In: Operations Management
Journal article summary on inter-group conflict
Peer Reviewed Journal article from past 3 years. Please include Article Title and Journal name
In: Operations Management
In the article from Forbes notes that the goal of a leader is not to clone him/herself, but to harness individual strengths for the greater good of the organization. This is best accomplished by respecting individual talents; not stifling them.
Yet some folks just don’t want to follow. The article notes several tips for leading those who do not want to follow: (1) be consistent, (2) the importance factor, (3) make respect a priority, (4) define acceptable behavior, (5) hit conflict head-on, (6) understanding the WIIFM factor, (7) view conflict as an opportunity, and (8) clarity of purpose.
The article ends with this quote “It’s important to remember that a manager exists when the company says so, but that said manager only really becomes a leader when their team says so”.
Do you agree with this statement?
In: Operations Management
Read at least 2 academically reviewed articles and Write an annotated bibliography paper on Master Budgeting
In: Operations Management
Respond to the following in a minimum of 175 words:
Discuss what elements should be present in an implementation plan.
Provide a specific example to illustrate your reasoning.
In: Operations Management
Current Market Mix of Netflix, as detail as possible, please.
In: Operations Management
Using one quantitative and one qualitative health policy research method described in this chapter, design a study to examine health centers are able to reduce or eliminate health disparities (i.e., differences in access, quality, and health outcomes) across racial or ethnic and socioeconomic sub-populations.
In: Operations Management
Describe the espoused values of a company you have worked for (or been exposed to - e.g., as a customer), but then describe how their enacted values were similar or different.
In: Operations Management
In general, teams can be described three ways. Name and define each.
In: Operations Management
Suggest journal, research paper link reference. i need this as reference for writing a research with title importance of indoor environmental quality to occupants.
In: Operations Management
With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
In: Operations Management
Large lots are desirable in supply chain coordination despite increasing holding costs.
In: Operations Management