100% Correct MOS3330 Homework 1 solutions
PA 1-17 (Static) Which of the following operational decisions…
Which of the following operational decisions correspond(s) to the consumption utility component of the consumer utility function?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.check all that apply
- When will the demand be fulfilled?
- How efficiently will the products or the services be delivered?
- What is the product or service to be delivered?
- Where will the demand be fulfilled?
PA 1-7 (Static) Four regional less-than-truckload…
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these shipments is two business days. The four carriers compete with each other on the basis of price and service quality rating, as shown in the following table. The price reported in the table is the (nondiscounted) cost per hundredweight (cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class 70. The service quality rating measures a carrier’s loss and damage record and goes from 0 (poor quality) to 100 (high quality).
| Carrier | Price | Service Quality Rating |
|---|---|---|
| A | $103.90 | 95 |
| B | $98.50 | 91 |
| C | $127.20 | 98 |
| D | $111.40 | 94 |
Which of these LTL carriers are on the efficient frontier?
Note: Select all that apply.Check All That Apply
- A
- B
- C
- D
PA 1-15 (Static) Which of the following operational decisions…
Which of the following operational decisions correspond(s) to the convenience component of the consumer utility function?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.check all that apply
- When will the demand be fulfilled?
- How efficiently will the products or the services be delivered?
- What is the product or service to be delivered?
- Where will the demand be fulfilled?
Solution
PA 1-17 (Static) Which of the following operational decisions…
Which of the following operational decisions correspond(s) to the consumption utility component of the consumer utility function?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.check all that apply
- When will the demand be fulfilled?
- How efficiently will the products or the services be delivered?
- What is the product or service to be delivered?
- Where will the demand be fulfilled?
Correct Answer – What is the product or service to be delivered?
Answer Explanation:
The consumption utility component of the consumer utility function measures how much a consumer likes a product or service based on its characteristics. This focuses on the quality, features, or attributes of the product or service itself. Therefore, decisions about what the product or service is will directly affect consumption utility.
Other questions like when or where the demand is fulfilled or how efficiently products are delivered relate to logistical and operational aspects, but not directly to consumption utility.
PA 1-7 (Static) Four regional less-than-truckload…
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these shipments is two business days. The four carriers compete with each other on the basis of price and service quality rating, as shown in the following table. The price reported in the table is the (nondiscounted) cost per hundredweight (cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class 70. The service quality rating measures a carrier’s loss and damage record and goes from 0 (poor quality) to 100 (high quality).
| Carrier | Price | Service Quality Rating |
|---|---|---|
| A | $103.90 | 95 |
| B | $98.50 | 91 |
| C | $127.20 | 98 |
| D | $111.40 | 94 |
Which of these LTL carriers are on the efficient frontier?
Note: Select all that apply. Check All That Apply
- A
- B
- C
- D
Correct Answer – Carrier A, Carrier B, and Carrier C are on the efficient frontier.
Answer Explanation
List Carrier Details:
- Carrier A: Price = $103.90, Quality = 95
- Carrier B: Price = $98.50, Quality = 91
- Carrier C: Price = $127.20, Quality = 98
- Carrier D: Price = $111.40, Quality = 94
Compare Prices:
- Carrier B has the lowest price.
- Carrier A is cheaper than Carrier D and Carrier C.
Compare Quality:
- Carrier C has the highest quality rating.
- Carrier A has higher quality than Carrier D and Carrier B.
Identify Dominance:
- Carrier D is dominated by Carrier A (lower price and higher quality).
Determine Efficient Frontier:
- Carrier A: Good balance of price and quality.
- Carrier B: Lowest price but lower quality.
- Carrier C: Best quality but highest price.
Conclusion:
- Carrier A, Carrier B, and Carrier C are on the efficient frontier.
- Carrier D is not on the efficient frontier.
PA 1-15 (Static) Which of the following operational decisions…
Which of the following operational decisions correspond(s) to the convenience component of the consumer utility function?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. check all that apply
- When will the demand be fulfilled?
- How efficiently will the products or the services be delivered?
- What is the product or service to be delivered?
- Where will the demand be fulfilled?
Correct Answer – When will the demand be fulfilled? and Where will the demand be fulfilled?
Explanation
Convenience refers to the questions of “when” and “where” the demand will be fulfilled
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