Experiment Module 1: Role Play: Super Table SawsPage 2of 3This document is the property ofDr. Curtis R. Price and cannot be distributed or recreated without written consent from Dr. Price.100 200 For example, if you were to choose to have a level of oversight of 70% (i.e. you would test 70% of the units before sending to retail) it would cost your firm $135 million dollars.Benefits of OversightIf you do not do oversight,defective units are known to be sent to retail stores and these will result in litigation as people making a kerf cut amputate a finger in the process.2The table below shows the losses to the company fromlitigation of defective units. Notice that as the level of oversight goes up the costs of litigation go down. This means that oversight works!Assumelitigation is the only cost associated with having defective units in the retail marketplace. Level of oversightCosts of litigation(in millionsof $) 0% 200 10 180 20 160 30 140 40 120 50 100 60 80 70 60 80 40 90 20 100 0 Assignment:I want you to choose a level of oversight. Your plan should NOT include any details about the logistics of the program, your job is merely to come up with the percentage of oversight to have. Write your plan as if you were writing a letter to the CEOinforming him of your decision. Obviously,as a part of this letter you must justify your choice of proportion. You do not have time to gather any more information other than what you are given here. Place your letter in the discussion board for the Module 1 CostBenefit experiment.You will see everyone else’s decision and justification afteryou have posted your decision. Notice there are no right or wrong answers to this experiment. The main purpose is to get us thinking clearly 2If you are an aspiring woodworker,you can learn about kerf cuts here……https://www.youtube.com/watch?v=t4JGlWyVDLs
Experiment Module 1: Role Play: Super Table SawsPage 3of 3This document is the property ofDr. Curtis R. Price and cannot be distributed or recreated without written consent from Dr. Price.about how we make decisions. We will follow up with discussion to highlight how business and managers “should” make decisions.Grading:If you post your decision before the due date and time, it is clear, well written and includes a cogent justification of how you made your decision, you will receive the full 10 points for this experiment. Keep in mind there
