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Managerial Decision Making 184

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Conduct a literature and an Internet search on the topic of the Challenger space shuttle disaster. Discuss how the decisions made that fateful day may have been influenced by framing on the part of both the NASA engineers and the engineers at Morton-Thiokol. Cite at least two sources besides your textbook 200-300 words APA

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The response addresses the queries posted in 538 words with references.

//The given assignment is based on the "Challenger Space Shuttle Disaster" that took place in 1986. This was a serious disaster that led to the death of seven crew member. Firstly, we will explain Space Shuttle Challenger Disaster to enhance your knowledge.//

The accident of Challenger took place on January 28, 1986 over the Atlantic Ocean, off the coastal part of Central Florida in the United States. In this accident, all seven astronauts were killed on board. The joint seal in the right SRB failure because of cold weather was the main cause of this explosion (Space Shuttle Challenger Disaster, 2009). The failure of O rings and joints was the main cause of the shuttle disaster.

//Above we have talked about Challenger Space Shuttle Disaster, now moving to the main part of the question, we will discuss decisions made that fateful day may have been framing on ...

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The response addresses the queries posted in 538 words with references.

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Managerial Science Excel Sheet

The questions are in red on the Excel sheet.

Monthly Demand (Number of New sign customer sign ups) Percentage of a time demand level occurs
1,000 5
2,000 15
3500 20
5,000 30
7,000 25
9,000 5

In addition to the historical demand, the company knows that the selling price per customer is a random value between \$50 and 80\$.
The selling price is due to the different packages ordered by diffeent customers. The random value of the selling price has been traditionally determined
within sun dish by a discrete uniform distribution.

Notes
The monthly demand data shown is an average of the demand from the first six months after the new service is introduced
The data about the percentage of time a specific demand level occurs is based on historical data over a number of observations
The simulated monthly demand multiplied by the simulated selling price gives the montly revenue.
Normally the company runs 200 replications in simulation models such as this one. The 200 replications are used to determine the average revenue and the
standard deviation of revenue that is expected from a new service offering.

It is important to note that in real life situations, it takes a significant amount of effort to collect data by examining various documents and interviewing different people, to develop
assumptions for simlifying analysis and to present the data in an understandable form.

Exhibit 4 demand forecast
Use the specified historical demand data to simulate the demand for the new service. Use the Monte Carlo Method to determine the expected average monthly demand over the first 6 months of the service. Conduct 200 replications of the simulation model to determine your results.

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