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Qm for excel decision analysis error
Qm for excel decision analysis error









qm for excel decision analysis error

Besnette's figures did not include (1) cost of research and development, (2) cost of new production equipment, or (3) cost of introducing the pina colada. Besnette to make future sales estimates for various possibilities and to indicate the present (discounted value of future profits) value. If other firms should develop a competing beverage the market would, of course, be split among them. Besnette also indicated that the sales reports indicate that other firms are considering a line of tropical drinks. Besnette, his market research manager, whose specialty is new product evaluation, and was advised that a market existed for an instant pina colada, but was some-what dependent on acceptance by both grocery stores and retail liquor stores. Jones is strictly a bottom line guy and is concerned about the sales volume of such a beverage. She also felt that the likelihood of a competing company developing a similar product in 12 months was 80 percent.

qm for excel decision analysis error

Jones, she indicated that she thought the possibility of her outstanding people successfully developing such a drink now that she'd done all the really important work was in the neighborhood of 90 percent. She estimates that expenditure on the development may be as much as $100,000 and that as much as a year's work may be required. Lee is recommending a major program to develop the pina colada. Dick Jones, the president, that exciting developments in the research and development section indicate that a new beverage, an instant pina colada, should be possible because of a new way to process and preserve coconut. Lee, who is in charge of research and development at DAH, Inc., this morning notified Mr. (DAH, Inc.), develops, processes, and markets mixes to be used in nonalcoholic cocktails and mixed drinks for home consumption. Create a decision tree in Excel QM or POM/QM for windows: Drink-At-Home, Inc.











Qm for excel decision analysis error