LE 2D C2 Strategic Position in Capacity Simulation
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Clemson University *
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8060
Subject
Management
Date
Feb 20, 2024
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xlsx
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17
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Your Name
Aryan Nahar
LE 2D C2 Strategic P
Purpose
Examine concept of strategic positioning and operation
using data from CAPACITY simulation.
Definition
Strategy (p. 21)
… strategy is a plan to achieve an obj
Competitive Product Space (p. 2
competitive product space is a repres
product attributes --
Contribution Margin
sales revenue minus all variable costs
break-even analysis
… calculation for determining the uni
Break-Even Point
The number of sales required to regain the mon
break-even formula ignoring the cost of money
Background
In early January, Littlefield Technologie
its newly developed Digital Satellite Sys
premium and competes by promising to s
customer will receive a rebate based on t
Management’s main concern is managin
undermine LT’s promised lead times and
1
Use the Lead Time Data on the "Data" tab to calculate t
and small manufacturers using the DSS’s
complex demand pattern predicted. Dela
𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑃𝑜𝑖𝑛𝑡 (𝑢𝑛𝑖𝑡 𝑠𝑎𝑙𝑒𝑠)=(𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)/((𝑆𝑎𝑙𝑒𝑠 𝑃𝑟𝑖𝑐𝑒 −𝑉𝑎𝑟𝑖𝑎
DAY
10
0.30
0.26
20
0.46
0.20
30
0.46
0.10
40
0.52
0.16
50
0.87
0.38
2
Create a line graph of the Actual lead time and Quoted 3
Position your team on the graph below for each 10 day 0.25
0.5
0.75
Lead time
1
(Days)
1.25
Average Lead Time
Standard Deviation of Lead Time
YOU
Day 40
YOU
Day 50
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.5
1.75
2
$60
$70
$80
COST as Inve
Position in Capacity Simulation
nal effectiveness
ective ..
sentation of the firm's product portfolio as measured along the four dimensions or - product cost, response time, variety, and quality …
s: CM = Sales Price - sum(variable costs) (Hill, Encyclopedia of Operations Management, 200
it sales required to cover costs. (Hill, Encyclopedia of Operations Management, 2007, p. 36)
ney invested
es (LT) opened its first and only factory to produce
stem (DSS) receivers. LT mainly sells to retailers
ship a receiver within the quoted lead time, or the
the delay. ng the capacity of the factory in response to the
d ultimately force LT to turn away orders. the following for each 10 day period (e.g., Day 1 to 10)
s in more complex products. LT charges a
ays resulting from insufficient capacity would
𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡𝑠) )=(𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)/(𝐶𝑜𝑛𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛)
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Items
Selling Price Per Unit
Total Sales quantity
Direct Labor Cost
Direct Material Cost
Other Variable expense
Management Salaries
Utilities (electricity,
water, communications)
Advertising Expense
(80% Fixed, 20%
Variable)
Interest Expense
Distribution
Expense(80% Fixed,
20% Variable)
Selling and Commission
(90% Fixed and 10%
Variable)
*Taxes (annual)
Note: Total tax annually
*
Unit
OMR
units or pcs
OMR
OMR
OMR
OMR
OMR
OMR
OMR
OMR
OMR
OMR
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g Enabled: Chapter 5 What-If Analysis for Linear ... i
Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product_1 to 17
and changing the objective function coefficient for Product_3 to 10?
Variable Cells
Final
Objective
Allowable
Allowable
Value
Reduced Cost
Coefficient
Increase
Decrease
Cell
Name
12
7.
1E+30
$B$2
Product 1
-2
:58
1E+30
Product 2
175
$B$3
$B$4
1E+30
-1.5
8
Product 3
Constraints
Allowable
Allowable
Final
Shadow
Constraint
R.H.Side
Increase
Decrease
Cell
Name
Value
Price
100
1E+30
100
$H$9
Resource A
800
1E+30
275
Resource B
525
$H$10
$H$11
700
366.6666667
700
Resource_C
700
1.75
100%.
because the total change in the objective function coefficients
Applying the 100% rule,
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