Maximizing profit or reducing costs

Assignment Help Operation Management
Reference no: EM13954049

Scenario:

Business decisions are often subject to constraints or business rules to solve business problems. Excel’s Solver can be used to develop decisions, such as maximizing profit or reducing costs.

ABCD is a sports equipment manufacturer. They need to find out the ideal number of basketballs and footballs to manufacture to maximize Net Profit. The capacity of production, cost, labor needed, time needed, and other known constraints are provided below:

Production Capability and Constraints (All unit costs are in $ and time in hours):

Total Machine hours available: Min 39,000 – Max 40,000 hrs.

The number of basketballs that could be produced: Min 30,000 – Max 60,000

The number of footballs that could be produced: Min 20,000 – Max 40,000

Ratio of basketballs / footballs: 1.5 – 1.5

Basketball selling Price: $14.00

Football Selling Price: $11.00

Tax Rate: 0.28%

Time to manufacture a Basketball: 0.5 hrs.

Time to manufacture a Football: 0.3 hrs.

Cost of labor -- 1 machine hour: $6.00

Cost of material-- 1 Basketball: $2.00

Cost of material-- 1 Football: $1.25

Set up your spread sheet in Excel’s Solver to determine the optimum number of each product [i.e. Footballs and Basketballs] that should be manufactured to maximize the profit.

Reference no: EM13954049

The leader of cross-functional work team

Teams go through ups and downs and team leaders are expected to know how to handle both, to keep the team on task. Imagine you are the leader of a cross-functional work team w

Tourism industry provides an intangible guest experience

The Hospitality and Tourism Industry provides an intangible guest experience. Name three intangible guest experiences in the Hospitality and Tourism Industry, and judge how th

Healthy competitive business

There is a healthy competitive business in providing emergency operation center facilities in the United States. Using a search engine, research the commercial offerings avail

Difference in informative presentation and persuasive one

What is the difference between an informative presentation and a persuasive one? Provide an example in your response. Do some disciplines lend themselves more to informing rat

Interpersonal relations-leadership-behavioral control

Would you rather work at an informal or formal organization? Explain why you find the characteristics of one more appealing than the other. Provide personal examples of how th

Project comparing three different alternatives

Create a simple decision tree for your project comparing three different alternatives. You are welcome to use the same template from the exercise posted on the lecture about c

What is the capacity of the process

What batch size would you choose in order to minimize the inventory without reducing the process capacity? Assuming that all units of a batch have to be processed before the

Discuss the single most interesting or surprising

Discuss the single most interesting or surprising thing you learned, as well as what made it so. If you were to speak with a friend considering taking this course, describe ho

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd