Response to the following :
1. Is JIT more appropriate for Amazon.com, a book, music, and electronics e-tailer, or Mouton-Rothschild, a French winemaker specializing in fine red wines? Explain.
2. Consider the cost-benefit analysis for the GE quality program discussed on page 000. Suppose GE's managers now estimate an 85% chance that the projects will yield an extra $20 million in benefits, and a 15% chance that the projects will yield an extra $80 million.
What is the expected value of the additional benefits now?
Assuming total costs remain $200 million, does this change your mind about whether the quality program was a worthwhile investment?