Production and Operations Management MID fall 25

1. Demonstrate briefly the “implementation of Strategy " for a new firm or idea with example. 5 2. Explain the concept Strategic Positioning and the factors with an example that helped a company to position itself to the market place Ог Outline how "Break-Even point theory helps in decision making? 5 3. An ice-cream retailer buys ice-cream at a cost of Tk. 5 per cup and sells it for Tk. 8 per cup; any remaining unsold at the end of the day can be disposed of at a return price of Tk. 1 per cup. Past sales have ranged between 15 and 20 cups per day; there is no reason to believe that sales volume will take on any other magnitude in future. Market size: 15 16 17 18 19 20 Probability: 0.10 0.20 0.30 0.25 0.1 0.05 Examine the expected value of perfect information. 5 4. The Weight Club considering the service facility, the success of which depends on their demand (i.e new members who would join because of the new facility), which is uncertain. The following table summarizes the return for each alternative services Demand Service Facility Poor Moderate High Child Care Centre $17,000 $27,000 $41,000 Swimming pool - 75,000 26,000 71,000 New Lockers & Showers 12,000 37,000 57,000 Food Court - 31,000 19,000 87,000 Spa 6,000 25,000 32,000 Determine the best investments under the environment of uncertainty by mentioning all criteria. (Degree of Realism, a= 0.8) 5 5. A company expects fixed cost of $22,800. Margin is to be 55 percent of retail. Variable cost is addition to costs of goods is estimated at $0.17 per dollar of sales. Evaluate revenue, cost and profit functions using s for sales volume. Draw break-even chart also Evaluate profit before taxes be on sales of $ 15000. 5