Maximizing profit or reducing costs

Assignment Help Operation Management
Reference no: EM13954049


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

Unmanaged change occurs when project deviate

Unmanaged change occurs when a project deviates from its planned scope. It's also known as variance. It can negatively impact the budget and schedule, or cause a project to fa

Low margin industrial cleaning supplies business

You are the CEO of a low tech, high volume, low margin industrial cleaning supplies (chemicals) business. You currently design your own products in house but employ third part

Analyzing the organization environment

For the Boeing company, examine the organization's environment. Describe one aspect that you felt was the most important for a company to grow and be successful regardless of

Organizational developments traditional values

Chapter Seven raises the question of whether Organizational Development's traditional values ( change should benefit not just the organization but the people who staff them as

Product contamination is catastrophic event

Product contamination is a catastrophic event, both for the organization at fault and for the victims. Cases of product contamination frequently make the news. Complete the fo

Compute the labor productivity and multifactor productivity

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $30, overhead rate is 1.0 times lab

Food is an integral part of understanding

Food is an integral part of understanding different countries, cultures, and lifestyles. In fact, your company is interested in importing Australian wine to the United State

Find the optimal run size

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 240 per day. The cost to pre


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