Shelby Shelving Case Study

Gabe's Auto produces and sells an auto part for $30.00 per unit. In 2010, 100,000 parts were

Rough approximation of the machine service rate μ based on the statistics from first 5 days:

1. a. The simulation indicates that 584 is the optimum stocking quantity. Daily profit at this stocking quantity is $331.4346.

Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the

|Price of Belgium cocoa beans|Quantity of Belgium cocoa beans |Quantity of Belgium cocoa beans |Total Demanded |

For this assignment, I am going to work with two-variable inequalities and demonstrate the practical application of these inequalities. I am going to use a graph that shows the number of TV’s on the left side and the number of refrigerators on the bottom. Of course this would mean that my x axis is the bottom, and my y axis on the left. The line shows the combination of TV’s and refrigerators that the truck can hold.

3. Market research estimates that monthly equipment production could be increased to 3,500 units which is well within production capacity limitations, if the price were cut from $1,580 to $1,400 per unit. Assuming the cost behavior patterns implied by the data in Exhibit 1 are correct, would you recommend that this action be taken? What would be the impact on monthly sales, costs, and income?

Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]

In our analysis we determined the equations for total cost and marginal cost using the average cost obtained from the regression model provided, and the fixed costs estimates in the collected data calculated by a previous resource endorsed by the company. Once we have determined the marginal cost equation, we calculated the output for perfect competition profit maximizing criteria P

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

The problem is to be formulated as two integer programming problems, one for the first year and the other for the second year.

Thank you for your interest in Dixie Overhead Shelving. We look forward to organizing your garage.

In the event that management’s view is one that is pessimistic, the maximin rule would apply. BioMed would set production at 342 units of production in order to minimize the maximum worst payoff which is this case, is a loss of $249.

Second, revising the constraints of total work time into 96096 for solver. By following this, it can be seen that the family model cars reduce from 2154 to 1967 and the counterpart remains the same. Turning to the max profit margin, it drops to 6046 from 6261.

Yr 23 ($) Yr 24 ($) Cost of planes 0.00 0.00 80,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Revenue 150,000,000.00 157,500,000.00 165,375,000.00 185,220,000.00 194,481,000.00 204,205,050.00 214,415,302.50 225,136,067.63 236,392,871.01 248,212,514.56 260,623,140.28 273,654,297.30 287,337,012.16 301,703,862.77 316,789,055.91 Less operating exp 132,140,000.00 138,754,000.00 144,469,740.00 155,822,627.00 162,881,016.15 171,030,884.57 178,851,101.06 187,801,097.03 196,461,659.76 206,294,288.39 215,881,896.83