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QNT 5040 Weeks 9 and 10 (Simulation Modeling) - The Prescott Furniture Company Decision Tree




Question;The Prescott Furniture CompanyInstructions:Using Palisades Precision Tree software create a tree that graphically shows the various optionsopen to customers of the Prescott Furniture Company1. You must import your Precision Treeinto a Word document that contains the NSU/SBE front page. Be sure to explain what you didto solve this problem, and explain what a decision tree is and what the solution is for each of thevarious branches. There is a maximum of 10 points available for this opportunity.The ProblemWalt (Hutch) Woods is the owner and main furniture maker at thePrescott Furniture Company (located just behind the K-Mart on route52) in Prescott Florida. The company has been in business for over 15years producing some of the finest examples of curio cabinets availablein the Southeast US. Hutch makes two sizes of cabinets, the regularsize is about 10 inches smaller in width than the large size cabinet seenon the right.The company uses only three types of woods, Miami Dade Pine, pecan, and red cherry tomake their cabinets. The Miami Dade Pine is only finished in natural wood, but thepecan and red cherry woods can be finished in either a matte finish or a glossy finishwhich both cost the same.Walt (Little Hutch) WoodsWalt?s son, Little Hutch, is a senior at Prescott High School where he has been taking asmany business courses and wood working classes as he can. Because he is planning ongraduating at the end of this semester, his dad hopes that he will continue his studies atPC2 and work part-time at his furniture shop. In order to help Little Hutch out he hasasked you to create a decision-tree that explains the various options open to customers.Over the past years Walt has been keeping track of the preferences that his customersmake when ordering a cabinet, and he has provided you with a table that shows thepercentages and costs of each item for you to use in your decision tree.1 No other software is acceptable for this case study for this two week period.2 PC = Prescott College.Copyright R&A 2014Page 1Your taskYou are to take this information and beginning with a purchase/don?t purchase decisionnode create a Precision Tree that shows Little Hutch the possible options open to thecustomer, and find the final ending price for each option.NOTE: You must also include the state of Florida sales tax and Prescott County sales taxcost. Together they total 7.25% of the total sale. You may have to calculate this by handin your decision tree.The Furniture OptionsThe following are the options open to customers of the company. Prepare a Precision Treegraphically showing these options, percentages and costs. Import this tree into a Word documentand explain your answers in the Word document.Prescott Furniture Company ? Cabinet Options ChartType of WoodFinish NaturalMiami DadePineSmall CabinetLarge CabinetPecanSmall CabinetLarge CabinetCherry WoodSmall CabinetLarge Cabinet% of peopleselecting thisoptionFinishGlossyCost ofCabinet with3this option8%14%Finish Matte$4,500$5,250XXXXXX17 %$3,500$3,750XXXX20%21%$2,000$2,500Be sure to also include the following table in your finished work project.?Assume that Walt will have 135 customers in the coming year, and that each one willorder one of the above cabinets in the same percentage indicated, how much is hisexpected income (gross) and how much will he pay in state and local sales taxes?Table 1. Estimated IncomeType of WoodEstimatedIncomeEstimatedSales TaxTotal IncomeMiami Dade PinePecanCherry Wood3 Customer costs before Florida and Prescott sales taxes.


Paper#46329 | Written in 18-Jul-2015

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