Case Study – Drink-At-Home, Inc
Recommendation
The recommendation that I put forward for this case study is a reasonable start to the drink Pina Colada. Based on the provided information, an estimated amount of $150,000 will be incurred to get the product and equipment to the market. Based on the initial investment, there will be a 60% sales potential for a moderate rollout followed hand in hand by the crash program, costing approximately $10,000 each month. The future profits have an estimated value of $600,000. This value is less compared to the significant rollout, though the sales potential is also less than the moderate rollout.
The output above indicates the model used in the case study. This case study has employed a Bayes process. Bayes process argues that the chances of an event taking place are based upon the given information that has a relation with the event at hand. It is applicable in seeing and forecasting chances of an event taking place and how the probability of the event happening will be affected by gaining any new information.
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Question
1. Have the mathematical model of the case study.
2. Obtain the solution to the problem using the QM, Excel or Lindo software. Append the solution screens provided by the software to the document to be delivered.
3. Express your conclusions regarding the case presented and its solution.