'Case Problem Production Strategy Essay\r'

'1. The recommended form of Body improver100 and Body electropositive200 simple machines to do?\r\n sol: I recommend you sir to uncover cubic decimetre angiotensin-converting enzyme (51) numbers of Body nonnegative100 and seventeen (17) numbers of BodyPlus200 machines so as to make the maximum pelf in manufacturing of these BodyPlus100 and BodyPlus200 machines.\r\n The effect on cyberspaces of the indispensableness that the number of units of the BodyPlus 200 produced must be at least(prenominal) 25% of the list production?\r\nSol: The interlocking clams that is obtained in manufacturing BodyPlus200 at least 25% of the total machines forget be marginally less(prenominal) when comp atomic number 18d to the profit that is obtained in manufacturing much BodyPlus100 machines i.e. more than 75% of total machines production.\r\n As calculated, the total expenditure that is do in manufacturing BodyPlus100 (includes the raw costs and labor costs) is $1309 per machine\r\ nThe total number of working hours in manufacturing BodyPlus100 (includes machining, welding, painting, goal work and for assembling, testing and packaging) is 15hrs.\r\n now, the net profit that is make in manufacturing wholeness BodyPlus100 machine after change it to an authorized dealer for (70% of the retail set i.e. $2400) is ($1680 †$1309) $371.\r\nNow the profit do per hour on manufacturing one BodyPlus100 machine is $24.73\r\nAdmittedly, referring to the calculations from attachment 1 from ‘Production dodging’ the net profit made per hour on manufacturing one BodyPlus200 machine is $20.83 \r\n Where efforts should be expended in company to increase contri thoion to network?\r\nSol: I sincerely advise you, sir, to reduce the total sh ar of manufacturing the BodyPlus200 in the total production as the profit obtained for each BodyPlus100 is more than the BodyPlus200.\r\n Also assigning lesser time for machining and welding is also resulting in t he total number BodyPlus100 machines produced so as to obtain more profits and time has to be managed well so that assigning ten (10) more hours for machining and welding will result in more number of products that nooky be manufactured.\r\n Instead of assigning 450 hours for finishing and painting, we whoremonger assign 440 hours for finishing and painting that potbelly produce one more BodyPlus100 (taken that the total percentage of BodyPlus200 is unless slightly less than the percentage recommended as 25% of the total production).\r\n Case Problem2 stem Plus:\r\n If Solutions Plus wins the put forward, which production facility (Cincinnati or Oakland) should supply the change fluid to the locations where the railroad locomotives atomic number 18 cleaned? How much should be shipped from each facility to each location? \r\nSol:\r\n \r\nNo. of gallons required\r\nNo of gallons supplied from\r\nCincinnati\r\n(in gallons)\r\nOakland\r\n(in gallons)\r\nSanta Ana \r\n22,418\r\nâ€â€\r\n22,418\r\nEl Paso\r\n6,800\r\nâ€â€\r\n6,800\r\nPendleton\r\n80,290\r\n30,290\r\n50,000\r\nHouston\r\n100,477\r\n50,447\r\n50,000\r\nKansas metropolis\r\n241,570\r\n191,570\r\n50,000\r\nLos Angeles\r\n64,761\r\n14,761\r\n50,000\r\nGlendale\r\n33,689\r\nâ€â€\r\n33,689\r\nJacksonville\r\n68,486\r\n18,486\r\n50,000\r\nLittle Rock\r\n148,586\r\n98,586\r\n50,000\r\nBridgeport\r\n111,475\r\n51,475\r\n50,000\r\nSacramento\r\n112,000\r\n62,000\r\n50,000\r\nTotal\r\n990,522\r\n517,615\r\n462,907\r\n here(predicate) we can see that the total numbers of gallons that are delivered from Cincinnati are more than 500,000 gallons. So we are pithy of 17,615 gallons of the locomotives cleanup position agent that has to be delivered from Cincinnati.\r\nTo satisfy the requirement of the majority of the dealers in the remaining locations, and considering the profits, all the 17,615 gallons of the cleaning agent is reduced from the Pendleton deal.\r\n What is the b reak-even gunpoint for Solutions Plus? That is, how depressed can the company go on its proffer without losing money?\r\nSol: The Break-Point is given by the point at which the company owns neither profit nor evil during the sale of the company products. Hence this is given as the zero profit and zero loss partition for the Solution Plus company. This Break Point can be calculated when there is no profit in the turn. If the price of cover is hiked and freight charges are also increased by the same list, therefore(prenominal) the Break Point is calculated at $1,821,214.39\r\nIf Solutions Plus wants to use its measurement 15% markup, how much should it bid? \r\nSol: If Solution Plus wants to use its standard 15% markup, then it should place a bid for $1,821,214.39\r\n Freight costs are significantly modify by the price of oil. The contract on which Solutions Plus is bidding is for ii years. Discuss how fluctuation in freight costs might affect the bid Solutions Plus subm its. \r\nSol: Here, the net profit made for one year is $237,749.72 and if the bid is made for one year the total amount has to be $1,821,214.39 but given that the bid has to be made for two years, then the bid price would be $3,642,428.78\r\nAnd the profit expected in two years (taken the oil prices are fixed) is $475,499.44\r\nIf the oil price is hiked by 15% then also profit is expected for the Solution Plus Company as there are few locations which are supplied with the cleaning agents without any raptus charges. So only a marginal amount of profit can be made in two years even after placing the bid.\r\n If the price of oil is slashed by any margin, then there will be more profits for the Company after one year.\r\n'