Production Strategy Essay

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The entire figure of clip spent for machining and welding during the industry of one BodyPlus100 ( includes the machining and welding hours mentioned in Frame Unit. Press Station and Pec-dec Station ) are eight ( 8 ) hours.

The entire figure of hours spent for Painting and completing in the full procedure ( includes the machining and welding hours mentioned in Frame Unit. Press Station. and Pec-dec Station ) is five ( 5 ) hours.

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The entire figure of hours spent for Assembling. proving and packaging for the industry of one BodyPlus100 machine is two ( 2 ) hours.

BodyPlus200

The entire figure of clip spent on machining and welding in the full procedure ( includes the machining and welding hours mentioned in Frame Unit. Press Station. Pec-dec Station and Leg Press Station ) during the industry of one BodyPlus200 machine is 12 ( 12 ) hours.

The entire figure of hours spent for Painting and completing in the full procedure ( includes the machining and welding hours mentioned in Frame Unit. Press Station. Pec-dec Station and Leg Press Station ) is 10 ( 10 ) hours.

The entire figure of hours spent for Assembling. proving and packaging for the industry of one BodyPlus100 machine is two ( 2 ) hours.

Calculations:

The entire figure of working hours assigned for machining and welding procedures is 600 hours.

The entire figure of working hours assigned for picture and coating procedures is 440 hours.

The entire figure of working hours assigned for Assembling. Testing and Packaging is 140 hours.

To happen out the entire figure of machines that can be made can be found out in the undermentioned math.

As either of the machines ( BodyPlus100 and BodyPlus200 ) requires two ( 2 ) hours of piecing. proving and packaging clip.

Entire figure of machines to be produced:

Now let the entire figure of BodyPlus100 machines industries be denoted by the variable ‘X’ and the entire figure of BodyPlus200 machines manufactured be denoted by the variable ‘Y’ .

Therefore. the entire clip required for Assembling. proving and Packaging is 2 hours.

That implies.

2X + 2Y =140

Then X+Y=70. There we get the entire figure of possible machines that can be made are 70 in figure.

As the recommended figure of BodyPlus200 machines that have to be produced must be at least 25 % of the entire figure of machines produced.

Then ‘Y’ takes a value of 25 % of the entire figure of possible machines i. e. 70 ( 70 ) .

Therefore. 17 fills in the best value of at least 25 % of entire figure of machines produced when the count of entire figure of machines produced are 60 five ( 65 ) .

Taking the figure of BodyPlus100 machines and BodyPlus200 machines manufactured to be 49 and 16 in Numberss severally. Then the computation follows as:

Time required for machining and welding:

1 ) BodyPlus100:

In the Frame unit. it takes four ( 4 ) hours of machining and welding clip.

In the Press Station. it takes two ( 2 ) hours of machining and welding clip.

In the Pec-dec Station. it takes two ( 2 ) hours of machining and welding clip.

The entire figure of machining and welding clip taken in the industry of one BodyPlus100 machine is eight ( 8 ) hours.

Therefore. the entire clip taken for machining and welding procedures during the industry of 49 BodyPlus100 is 49*8 = 392 hours.

2 ) BodyPlus200:

In the Frame unit. it takes five ( 5 ) hours of machining and welding clip.

In the Press Station. it takes three ( 3 ) hours of machining and welding clip.

In the Pec-dec Station. it takes two ( 2 ) hours of machining and welding clip.

In the Leg Press Station. it takes two ( 2 ) hours of machining and welding clip.

The entire figure of machining and welding clip taken in the industry of one BodyPlus200 machine is 12 ( 12 ) hours.

Therefore. the entire clip taken for machining and welding procedures during the industry of 17 BodyPlus200 is 17*12 = 204 hours.

Therefore. the entire figure of hours spent for the full industry processes is equal to 392 + 204 = 596 hours

Therefore. we lost 4 hours of fresh machining and welding clip.

Time required for Painting and coating:

1 ) BodyPlus100:

In the Frame unit. it takes two ( 2 ) hours of picture and finishing clip.

In the Press Station. it takes one ( 1 ) hours of picture and finishing clip.

In the Pec-dec Station. it takes two ( 2 ) hours of picture and finishing clip.

The entire figure of picture and finishing clip taken in the industry of one BodyPlus100 machine is five ( 5 ) hours.

Therefore. the entire clip taken for picture and finishing procedures during the industry of 49 BodyPlus100 is 49*5 = 245 hours.

2 ) BodyPlus200:

In the Frame unit. it takes four ( 4 ) hours of picture and finishing clip.

In the Press Station. it takes two ( 2 ) hours of picture and finishing clip.

In the Pec-dec Station. it takes two ( 2 ) hours of picture and finishing clip.

In the Leg Press Station. it takes two ( 2 ) hours of picture and finishing clip.

The entire figure of picture and finishing clip taken in the industry of one BodyPlus200 machine is ten ( 10 ) hours.

Therefore. the entire clip taken for machining and welding procedures during the industry of 17 BodyPlus200 is 17*10 = 170 hours.

Therefore. the entire figure of hours spent for the full industry processes is equal to 245 + 170 = 415 hours.

Where the entire figure hours assigned for picture and coating is 450 hours.

Therefore. we lost 35 hours of fresh picture and finishing clip.

Time required for Assembling. Testing and Packaging:

1 ) BodyPlus100:

The fabrication of one BodyPlus100 machine takes two ( 2 ) hours of piecing. proving and packaging clip.

Therefore. the entire figure of hours spent in piecing. proving and boxing during the industry of 49 machines is 49*2= 98hours.

1 ) BodyPlus200:

The fabrication of one BodyPlus200 machine takes two ( 2 ) hours of piecing. proving and packaging clip.

Therefore. the entire figure of hours spent in piecing. proving and boxing during the industry of 17 machines is 17*2= 34hours.

In entire. the entire figure of hours spent during the full procedure is 98 + 34 = 132 hours.

As the assigned figure of piecing. proving and packaging clip is 140 hours.

So. eight ( 8 ) hours of the collection. proving and packaging clip is fresh.

Entire Cost for bring forthing the machines:

1 ) BodyPlus100:

The BodyPlus100 machine consists of four ( 4 ) units.

  1. Frame unit:Where the natural stuff cost for each BodyPlus100 unit is $ 450 in this Frame Unit.
  2. Imperativeness Station:Here the natural stuff costs for each BodyPlus100 unit is $ 300 in this Press Station.
  3. Pec-dec Station:Here the natural stuff cost for each BodyPlus100 unit is $ 250 in this Pec-dec Station.
  4. Packaging:Here the estimated cost for each BodyPlus100 unit is $ 50 for packaging.

2 ) BodyPlus200:

The BodyPlus200 machine consists of five ( 5 ) units.

  1. a )Frame unit:Where the natural stuff cost for each BodyPlus200 unit is $ 650 in

this Frame Unit.

  1. B )Imperativeness Station:Here the natural stuff costs for each BodyPlus200 unit is $ 400 in

this Press Station.

  1. degree Celsiuss ) Pec-dec Station:Here the natural stuff cost for each BodyPlus200 unit is $ 250 in

this Pec-dec Station.

  1. Leg Press Station:Here the natural stuff cost for each BodyPlus100 unit is $ 200

in this Leg Press Station.

  1. Packaging:Here the estimated cost for each BodyPlus200 unit is $ 75 for

packaging.

Labor Costss during the industry Procedure:

  1. Machining and welding:Given that the labour costs are $ 20 per hr for machining and welding clip.

Now the entire figure of hours spent for machining and welding in fabricating one BodyPlus100 and one BodyPlus200 are eight ( 8 ) and twelve ( 12 ) severally.

Therefore. the labour costs for machining and welding estimated for fabricating one BodyPlus100 to be 8*20 = $ 160.

And. the labour costs for machining and welding estimated for fabricating one BodyPlus200 to be 12*20 = $ 240.

  1. Painting and coating:Given that the labour costs are $ 15 per hr for picture and finishing clip.

Now the entire figure of hours spent for picture and coating in fabricating one BodyPlus100 and one BodyPlus200 are five ( 5 ) and ten ( 10 ) severally.

Therefore. the labour costs for painting and completing estimated for fabricating one BodyPlus100 to be 5*15 = $ 75.

And. the labour costs for painting and completing estimated for fabricating one BodyPlus200 to be 10*15 = $ 150.

  1. Assembly. Testing and Packaging:Given that the labour costs are $ 12 per hr for assembly. proving. and packaging clip.

Now the entire figure of hours spent for piecing. proving and packaging in fabricating one BodyPlus100 and one BodyPlus200 are two hours each.

Therefore. the labour costs for painting and completing estimated for fabricating one BodyPlus100 to be 2*12 = $ 24.

And. the labour costs for painting and completing estimated for fabricating one BodyPlus200 to be 2*12 = $ 24.

Therefore the entire labour costs in fabricating 49 BodyPlus100 are

49* ( $ 160+ $ 75+ $ 24 ) = 49* ( $ 259 )

= $ 12691

Besides. the entire labour costs in fabricating 17 BodyPlus200

are

17* ( $ 240+ $ 150+ $ 24 ) =17* ( $ 419 )

= $ 7123

Gross outgo in the production of one unit of:

  • BodyPlus100:The entire cost made in the industry of one BodyPlus100 machine ( includes altogether costs and labour costs )

$ 450+ $ 110+ $ 300+ $ 55+ $ 250+ $ 70+ $ 50+ $ 24 = $ 1309.

  • BodyPlus200:The entire cost made in the industry of one BodyPlus200

machine ( includes altogether costs and labour costs )

$ 650+ $ 160+ $ 400+ $ 75+ $ 250+ $ 70+ $ 200+ $ 70+ $ 75+ $ 24 = $ 1974.

Net income Calculations:

The retail monetary value of one BodyPlus100 machine is $ 2400.

The retail monetary value of one BodyPlus200 machine is $ 3500.

An authorised trader will buy at merely 70 % of the suggested retail monetary value.

Hence. a sale of one BodyPlus100 will bring forth 70 % of $ 2400 = $ 1680

And a sale of one BodyPlus200 will bring forth 70 % of $ 3500 = $ 2450.

True. the net net income that is made in the sale of one BodyPlus100 machine is ( $ 1680 – $ 1309 ) = $ 371.

Whereas the net net income that is made in the sale of one BodyPlus200 machine is ( $ 2450 – $ 1974 ) = $ 476.

Here the net net income made on fabricating one BodyPlus200 machine ( $ 476 ) is larger in figure than the net income that is made on fabricating one BodyPlus100 machine ( $ 371 ) .

But if we calculate the net net income that is made per hr work will wholly alter the sentiment onto BodyPlus100 machine.

As. we get a net income of $ 476 after working 24 hours in fabricating BodyPlus200 machine. This means the net net income made per hr on fabricating one BodyPlus200 is merely

$ 476/24 = $ 19. 83

Whereas. the net net income made on fabricating one BodyPlus100 machine is $ 371 after working for 15 hours.

Therefore. net income made per hr is

$ 371/15 = $ 24. 73

Decision:

So. mentioning to the above net income math increasing the production per centum ( i. e. & gt ; 75 % ) in the entire production will bit by bit increase the net incomes of the company.

Solutions Plus

Table2. 1

No. of gallons required Cargo Charges No of gallons supplied from Entire charges for transporting
Cincinnati Oakland Cincinnati Oakland Cincinnati Oakland
Santa Ana 22. 418 —– 0. 22 —– 22. 418 —– 4. 931. 96
El Paso 6. 800 0. 84 0. 74 —– 6. 800 —– 5. 032
Pendleton 80. 290 0. 83 0. 49 30. 290 50. 000 25. 140. 7 24. 500
Houston 100. 477 0. 45 —– 50. 447 50. 000 22. 701. 15 —–
Kansas metropolis 241. 570 0. 36 —– 191. 570 50. 000 68. 965. 2 —–
Los Angeles 64. 761 —— 0. 22 14. 761 50. 000 —— 11. 000
Glendale 33. 689 —— 0. 22 —— 33. 689 —— 7. 411. 58
Jacksonville 68. 486 0. 34 —— 18. 486 50. 000 6. 285. 24 ——
Small Rock 148. 586 0. 34 —— 98. 586 50. 000 33. 519. 24 ——
Bridgeport 111. 475 0. 34 —— 51. 475 50. 000 17. 501. 5 ——
Capital of california 112. 000 —— 0. 15 62. 000 50. 000 —— 7. 500
Entire 990. 522 Grand Total 517. 615 462. 907

Here we can see that the entire Numberss of gallons that are delivered from Cincinnati are more than 500. 000 gallons. So we are short of 17. 615 gallons of the engines cleaning agent that has to be delivered from Cincinnati.

To fulfill the demand of the bulk of the traders in the staying locations. and sing the net incomes. all the 17. 615 gallons of the cleansing agent is reduced from the Pendleton trade.

Table2. 2

No. of gallons required Production cost for the entire figure of gallons Entire charges for transporting Entire outgo from
Cincinnati

( $ 1. 20/gallon )

Oakland

( $ 1. 65/gallon )

Cincinnati Oakland Cincinnati Oakland
Santa Ana 22. 418 —– $ 36. 989. 70 —– $ 4. 931. 96 —– $ 41. 921. 66
El Paso 6. 800 —– $ 11. 220. 00 —– $ 5. 032. 00 —– $ 16. 252. 00
Pendleton 62. 675 $ 15. 210. 00 $ 82. 500. 00 $ 10. 520. 25 $ 24. 500. 00 $ 25. 730. 25 $ 107. 000. 00
Houston 100. 477 $ 60. 536. 40 $ 82. 500. 00 $ 22. 701. 15 —– $ 83. 237. 55 $ 82. 500. 00
Kansas metropolis 241. 570 $ 229. 884. 00 $ 82. 500. 00 $ 68. 965. 20 —– $ 298. 849. 20 $ 82. 500. 00
Los Angeles 64. 761 $ 17. 713. 20 $ 82. 500. 00 —— $ 11. 000. 00 $ 17. 713. 20 $ 93. 500. 00
Glendale 33. 689 —— $ 55. 586. 85 —— $ 7. 411. 58 —— $ 62. 998. 43
Jacksonville 68. 486 $ 22. 183. 20 $ 82. 500. 00 $ 6. 285. 24 —— $ 28. 468. 44 $ 82. 500. 00
Small Rock 148. 586 $ 118. 303. 20 $ 82. 500. 00 $ 33. 519. 24 —— $ 151. 822. 44 $ 82. 500. 00
Bridgeport 111. 475 $ 61. 770. 00 $ 82. 500. 00 $ 17. 501. 50 —— $ 79. 271. 50 $ 82. 500. 00
Capital of california 112. 000 $ 74. 400. 00 $ 82. 500. 00 —— $ 7. 500. 00 $ 74. 400. 00 $ 90. 000. 00

After cut downing the supply to the Pendleton refering larger net incomes. the entire no. of gallons of cleansing agent sent to the Pendleton will be 17. 615 less than that stated in Table-2. 1

Table-2. 3

No. of gallons required No. of gallons supplied Entire Outgo

( in $ )

Entire Income from each location ( 15 % more than the existent cost )
Santa Ana 22. 418 22. 418 $ 41. 921. 66 $ 48. 209. 91
El Paso 6. 800 6. 800 $ 16. 252. 00 $ 18. 689. 80
Pendleton*** 80. 290 62. 675 $ 132. 730. 25 $ 152. 639. 79
Houston 100. 477 100. 477 $ 165. 737. 55 $ 190. 598. 18
Kansas metropolis 241. 570 241. 570 $ 381. 349. 20 $ 438. 551. 58
Los Angeles 64. 761 64. 761 $ 111. 213. 20 $ 127. 895. 18
Glendale 33. 689 33. 689 $ 62. 998. 43 $ 72. 448. 20
Jacksonville 68. 486 68. 486 $ 110. 968. 44 $ 127. 613. 71
Small Rock 148. 586 148. 586 $ 234. 322. 44 $ 269. 470. 81
Bridgeport 111. 475 111. 475 $ 161. 771. 50 $ 186. 037. 23
Capital of california 112. 000 112. 000 $ 164. 400. 00 $ 189. 060. 00
Sum 990. 552 972. 937 $ 1. 583. 464. 67 $ 1. 821. 214. 39

*** indicates the locations that are short of the locomotor cleansing agent than they require by any sum.

Decision:

Therefore the net net income made for one twelvemonth is $ 237. 749. 72 and if the command is made for one twelvemonth the sum sum has to be $ 1. 821. 214. 39 but given that the command has to be made for two old ages. Then the command monetary value would be $ 3. 642. 428. 78

And the net income expected in two old ages ( taken the oil monetary values are fixed ) is $ 475. 499. 44

If the oil monetary value is hiked by 15 % so besides net income is expected for the Solution Plus Company as there are few locations which are supplied with the cleansing agents without any transportation charges. So merely a fringy sum of net income can be made in two old ages even after puting the command.

If the monetary value of oil is slashed by any border. so there will be more net incomes for the

Company after one twelvemonth.

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