Hawthorne Plastics

Case Analysis

An “imperfect tester” problem in the context of deciding how to produce batches of plastic tape, as the uncertainty about the length of the molecular chains in the raw material. A decision on whether the raw material and the choice of production must be made to test the latter choice, combined with the length of the molecular chains will affect the cost and quality of results. For a process, there is additional uncertainty about pressure. For use early in this section, a decision t … Read more »

An “imperfect tester” problem in the context of deciding how to produce batches of plastic tape, as the uncertainty about the length of the molecular chains in the raw material. A decision on whether the raw material and the choice of production must be made to test the latter choice, combined with the length of the molecular chains will affect the cost and quality of results. For a process, there is additional uncertainty about pressure. For use early in this section, a decision theory course with Bayes theorem. Involves many decision theory and techniques can also be used as a test.
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from
John S. Hammond
Source: Harvard Business School
6 pages.
Release date: 01 August 1970. Prod #: 171004-PDF-ENG
Hawthorne Plastics HBR case solution