Exercises on Admin systems in Organizations
2015 March Exercise 1 XYZ Ltd has estimated that the demand for one of its products is either 100, 200, or 300 units in a month. The product is sold for $16/ item and total variable costs amount to $8/item. If demand is less than supply the product may be sold off cheaply for $3 per item. There is no penalty cost for not meeting demand. (i) Considering only production levels of 100, 200 and 300, draw up a payoff table for this situation with the following template. (ii) What will the production level chosen based on the maximax strategy? Production level Possible demands Suggested answer Exercise 2 XYZ Education centre is considering to launch an online management education programme targeting the part-time management education market in Hong Kong for mature students who need to do a lot of overseas travelling. Based on the following root definiti...