e related income area (triangular) of two processes
Plastedor Production Decisions Report
This report analyses Plastedor production process decisions using an expected value
criterion to find out the best outcome of probabilities and the best income in...
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e related income area (triangular) of two processes
Plastedor Production Decisions Report
This report analyses Plastedor production process decisions using an expected value
criterion to find out the best outcome of probabilities and the best income in monetary
terms.
The income is valued through cash flow based accounting principles, leaving out
costs carried out before the production (costs for experimenting).
The accrual based
accounting is left out in order to find out most effective cash flow based process.
Related to the above said the experimenting costs of £1’000 per production run where
excluded from the Process II and Process III setup costs.
The production decision and the sensitivity of related inputs are analysed through
different perspectives.
As the decision tree illustrates, the most important decision is
whether to take the molecule chain-length test or not.
Test taking is related to the
accuracy of deciding the correct process and thus reflects higher economic b
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