Case Study of Time-Critical Management Essay

Based on the EMV done above, the optimum decision scheme base on the cost alone is to get the character from firing solution and transport it via Land route.Consider the calculations attached in memorandum 1 to draw the conclusion in the above analytic thinking sensibility AnalysisResale of new thrust reverser .Considering the Y as the number of historic period after which we are able to sell the newly purchased Thrust Reverser (Node B). As seen from memorandum 2, the optimum decision strategy remains the same as ample as Y is equal or more than 2 years.Probability of whether BCS dowery is fit or notConsider the chance that the BCS component will fit is p and then the probability that BCS component will not fit is (1-p) As seen from calculation done from Memo 3, The optimum decision strategy remains the same as long as p 51.7 %. Since its mention that the probability that BCS component fits is 35% to 50%, the optimum decision remains the same.Based on the sensitivity anal ysis done above, our optimum decision strategy doesnt change unless the variables egress unreasonable values.However this optimum decision strategy is calculated based on cost alone, If we consider the study loss along with gross for the Latin Airlines, then transporting the ARS solution component by land has a 20% chance of delaying the aircraft by 3 more days take to significant loss in reputation of the Airlines.Whereas transporting the ARS solution component by Air doesnt have such of extending the delay and is 100% gum elastic way of transport.Considering the difference in the cost between transferring ARS solution component by Air and by Land, the cost difference is only $7659, which is very(prenominal) negligible.So after considering the loss in revenue along with reputation for the Latin airlines, we suggest that the Optimum decision strategy will be to get the component from ARC solution and transport it via Air route.