Table of Contents
SI502: Production Choices
CTIS as info service provider
What objective for CTIS?
Should CTIS maximize profits?
CTIS maximizing profits
General Objective: Maximize Net Benefits
What does CTIS learn from this?
Suppose CTIS sells outside Dow
Example
Should CTIS just work for Dow, or sell outside?
PPT Slide
How much inside vs. outside?
PPT Slide
Summary: Maximizing Net Benefits
Technology: The Art of the Possible
Production functions
More than one way to skin a cat
Another view: Cost minimization
Cost efficiency
External values can be internalized
Choosing efficient factor mix
Cost considerations
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Author: Jeffrey K. MacKie-Mason
Email: jmm@umich.edu
Home Page: http://www.si.umich.edu/SI502/
Download presentation source
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