Decision Analysis Case Study
MME 3271 Engineering Management 1
Section 1
CASE STUDY 1: Decision Analysis
Company Name: |
Group Members: No. | Student Name | Matric No. | 1.Leader | | | 2. | | | 3. | | | 4. | | | 5. | | |
Case Study report | Marks | * Part 1: Decision tree | | * Part 2: Recommendation if market research is not available | | * Part 3: Decision strategy | | * Part 4: Recommendation for market research | | * Part 5: Additional information | | * Neatness and ease of reading | | * Presentation/Discussion | | Total Marks | |
Decision Analysis Case Study 1:
Purchasing Strategy
Company X, is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Muhammad's initial judgment is to submit a bid of $5 million. Based on his experience, Muhammad estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Company X. The current date is June 1. Sealed bids for the property must be submitted by August 15. The winning bid will be announced on September 1.
If Company X submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Muhammad believes that a referendum could be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums,
The sealed-bid procedure requires the bid to be submitted with a certified check for 10% of the amount bid. If the bid is rejected, the deposit is refunded, If the bid is accepted, the deposit is the down payment for the property. However, if the bid is accepted and the bidder does not follow through with the purchase and meet the reminder of the financial obligation within 6 months, the
Section 1
CASE STUDY 1: Decision Analysis
Company Name: |
Group Members: No. | Student Name | Matric No. | 1.Leader | | | 2. | | | 3. | | | 4. | | | 5. | | |
Case Study report | Marks | * Part 1: Decision tree | | * Part 2: Recommendation if market research is not available | | * Part 3: Decision strategy | | * Part 4: Recommendation for market research | | * Part 5: Additional information | | * Neatness and ease of reading | | * Presentation/Discussion | | Total Marks | |
Decision Analysis Case Study 1:
Purchasing Strategy
Company X, is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Muhammad's initial judgment is to submit a bid of $5 million. Based on his experience, Muhammad estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Company X. The current date is June 1. Sealed bids for the property must be submitted by August 15. The winning bid will be announced on September 1.
If Company X submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Muhammad believes that a referendum could be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums,
The sealed-bid procedure requires the bid to be submitted with a certified check for 10% of the amount bid. If the bid is rejected, the deposit is refunded, If the bid is accepted, the deposit is the down payment for the property. However, if the bid is accepted and the bidder does not follow through with the purchase and meet the reminder of the financial obligation within 6 months, the