Case Study of Time-Critical Management Essay

Based on the EMV make above, the optimal decisiveness schema base on the cost alone is to be presbyopic the persona from ARC solution and lift it via Land route.Consider the calculations attached in Memo 1 to draw the refinement in the above analysissensitivity AnalysisResale of new thrust reverser .Considering the Y as the number of years subsequently which we are able to sell the newly purchased Thrust Reverser (Node B). As seen from Memo 2, the optimal decision strategy remains the identical as long as Y is equal or more than 2 years.Probability of whether BCS component is fit or nonConsider the lot that the BCS component will fit is p and whence the probability that BCS component will not fit is (1-p) As seen from calculation do from Memo 3, The best 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 analysis done abo ve, our optimum decision strategy doesnt variety show unless the variables take unreasonable values.However this optimum decision strategy is calculated ground on cost alone, If we consider the constitution dismission along with revenue for the Latin commitlines, then transportationing the ARS solution component by land has a 20% chance of delaying the aircraft by 3 more years leading to significant loss in report card of the Airlines.Whereas transporting the ARS solution component by Air doesnt have such of extending the delay and is 100% safe mode of transport.Considering the difference in the cost surrounded by transferring ARS solution component by Air and by Land, the cost difference is tho $7659, which is very 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 collar the component from ARC solution and transport it via Air route.