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You class discussion class linear programming useful

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Unformatted text preview: ramming Useful Useful EXCEL EXCEL Eases computation Base Case Base TOTAL COST = $19,860,000 TOTAL REVENUE = $ 53,500,000 PROFIT = $33,640,000 Sandra’s Plan Sandra’s TOTAL COST = $ 21,030,000 TOTAL REVENUE = $ 55,130,000 PROFIT = $ 34,100,000 Bill’s Plan Bill’s TOTAL COST = $ 22,110,000 TOTAL REVENUE = $ 57,425,000 PROFIT = $ 35,315,000 Answers Answers Which of the 3 options maximizes Which profit – Sandra’s, Bill’s or no promotion? profit Bill’s plan is the most profitable PRO FIT (O utsourcing = $18/unit) $35, 315 $35, 500 Profit $35, 000 $34, 500 $34, 000 $34, 100 $33, 640 $33, 500 $33, 000 $32, 500 B as e Cas e S andra's plan Opti ons B ill's plan Answers Answers If the subcontracting cost rises to If subcontracting cost $22/unit, does this change the decision $22/unit does change when the discount is $5? when No – Bill’s plan remains the best option PRO FIT (O utsourcing = $22/unit) $31, 000 $30, 735 P o it rf $30, 500 $30, 000 $29, 560 $29, 760 $29, 500 $29, 000 $28, 500 B as e Cas e S andra's plan Opti ons B ill's plan Answers Answers How does the answer change if $10 How discount is needed to achieve the discount is impact of $5 discount? impact Base Case with no promotio...
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This document was uploaded on 03/27/2014.

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