Group 2 Red Brand Canners Case Study

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

Dragon Soup should increase the regular price of soup. The sales team is confident they will be able to sell soup at any price due to the cult-like following of The Clangers. Dragon Soup then just needs to find the optimal price per can for their purposes of maximizing income. Based on the spreadsheet, a price of $1.99 per can maximizes Gross Profit at $547,298 (Net Income of $207,354). On the other hand, Net Income is maximized at a regular price of $2.15 per can, producing Net Income of $226,740 (Gross Profit falls to $516,783).

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

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

There is more adequate to use different method for calculation. Materials budget based on mashing not number of bottles. In January there is 2 mashing per month, but since February until June is 3 each month.

Aramyan, L. H., Meuwissen, M. M., Oude Lansink, A. M., van der Vorst, J. J., van Kooten, O., & van der Lans, I. A. (2009). The perceived impacts of quality assurance systems on tomato supply chain performance. Total Quality Management & Business Excellence, 20(6), 633-653.

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]

Recent increases in orders for bottled juices will result in increasing the output of the bottling operation at the Cambridge plant and it will take over the space previously used by the bakery operation.

“the extra produce costs school districts $5.4 million a day, with $3.8 million of that being tossed in the trash, according to national estimates based on a 2013 study of 15 Utah schools by researchers with Cornell University and Brigham Young University” (Watanabe).

3. What weekly production plan for standard and light weight compressors would result in the highest financial return for Catawba?

* Lower than planned usage of ingredients (510 liters lower) for ice-cream and 21 liters for specialties (Other ingredients were in 100 grams, which was converted to liters for the calculation of total ingredients)

Looking at the Sensitivity analysis report produced by Solver (appendix 2.1, the sensitivity analysis on the previous model), we see that the shadow price for Grade A tomatoes is $271.50 (per 1000 lbs). This means that RBC should be willing to pay up to a maximum of $271.50 to obtain an additional 1000 lbs of extra grade A tomatoes without making a loss. This is true for up to an additional 600,000 lbs. Beyond that, the value added by the extra tomatoes would be insufficient to be profitable. Hence the management of RBC should evaluate the amount of profit they wish to make on the AA batch and accordingly set their max price well below the shadow price. If their marketing strategy dictates that it is more important to capture market share, RBC may

And the maximum payoff (as per [3] above) for serving 50 customers will be (150 – 100) x 50= $2500.

Use your graphs to find Brennan's profit-maximizing output. (Hints: where MC=MR, you can estimate the level of output if not given specific number)

The boom in IT industry had led the city of Hyderabad expand multi-fold within the span of few years to accommodate more and more IT SEZs and other entities that get along with this industrial development. One such town that has witnessed tremendous development in last few years is Patancheru which is in close proximity to one of the IT hubs of Hyderabad – Gachibowli. There isn’t in doubt about the