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Operations Management Assignment | Top Essay Writing

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February 21st, 2020

ABMT is trying to decide whether to make or buy an accessory item for one of their products. It is projected that this item will sell for $10 each. If the item is bought, there are three suppliers with different costs and quality ratings to choose from. If they make the item, then they have two processes that could be used.

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Process A requires a large investment but has a low production cost per unit. Process B requires a smaller investment but has a relatively high production cost per unit. Regardless of whether the item is bought or produced internally, there is a 50% chance that they will sell 50,000 units and a 50% chance that they will sell 100,000 units. If you were to draw a decision tree for this problem, how many decisions would there be? Get Operations Management homework help today

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