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ASSESSMENT ITEM 1—WRITTEN ASSIGNMENT
Due date: Weighting: Length: Week 6 40% Less than 5MB
ASSESSMENT

1

OBJECTIVES
This assessment item related to course learning outcomes 1, 2 and 6.

QUESTION 1

(5 MARKS)

List and describe the major components of BI. What are the major similarities and differences between DSS and BI?

QUESTION 2

(20 MARKS)

XYZ is a manufacturing company specialising in a variety of dairy products. The company is planning to launch a new product in the Australian market. The product development group claims that the anticipated net present value for the new product is over $1,000,000 (one million dollars) and they have recommended the project to proceed. Your task is to check the group‟s claim to determine if it is reasonable. In doing so, you are required to develop a decision support system using Visual DSS. This decision support system will be used to assist the management of the company to make an informed decision about manufacturing of the new product. Table 1 summarises the related information. Cost of production: $7.25 per unit Annual overhead cost: $1,000,000 Initial investment needed: $5,000,000 Estimated selling price: $15.75 per unit Market at time of introduction: 900,000 units per year Market growth: 9.5% per year Market share: 36% Assumed economically useful lifetime: 5 years, commencing in 2014 Discount rate used to analyse new product proposals is 12% Table 1: Production details

1

Your task details:
1. Develop a DSS model using Visual DSS and the variables described above. Include comments within your Visual DSS model to explain the variables and your calculations. (Visual DSS software and the related tutorial are available from the Week 2 materials on the course website. The information provided in the tutorial is basic. You can get more details in the online manual under Help menu). Submit a…...

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