Decision modeling and analysis Essay

Case Problem1: Production Strategy: Here, there is a production management in the Better Fitness, Inc. (BFI) which manufactures two types of machines (BodyPlus100 and BodyPlus200). The detailed math has been done in the report as per the statistics given for its production of the two varieties of the machines. The raw material costs in each section consisting in the manufacture of the specific machine (either BodyPlus100 or BodyPlus200). The labor costs are also given which sums up the production cost of the machine so as to calculate the total cost for its manufacture. The net profits are calculated and recommended that the manufacture of one BodyPlus100 machine provides more profit than that is produced in the manufacture of one BodyPlus200 machine. As the net profit made per hour in the manufacture of one BodyPlus100 is $24.73 and where as, the net profit made per hour in the manufacture of one BodyPlus200 is $19.83 Case Problem2: Solutions Plus: In this case issue, the company Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a wide variety of applications. The main issue is that this company has been invited to forward a bid to supply Great North American railroad with a cleaning fluid for locomotives. The main case is to deal with the math related to the production cost and the shipping from two different places (Cincinnati and Oakland, California). The Solution Plus itself cannot produce and deliver the entire amount of required gallons of the cleaning agent and considering the larger distances to ship these cleaning agents, the shipping charges are also included as the expenditure for manufacturing the cleaning agent. The bid has is sent after deciding that the entire production from Cincinnati and Oakland, California shorts the exact requirement of the cleaning agents from eleven (11) different locations in America.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Since the requirement is not exactly met, the supply of the cleaning agents to Pendleton is made short of 17,615 gallons. The reason only Pendleton is made short of its required deal because, the shipping costs are more to the place from Cincinnati. Also, specified that only 500,000 gallons of cleaning agent can be supplied from Cincinnati and only 50,000 gallons can be sent to any location from Oakland, California. The bid is for a contract of two years. So the shipping costs may vary after one year as the fuel rates might fluctuate. So the Director of marketing of Solution Plus has to bid now fore sighting the fluctuations in the fuel price. Hence, due to the restriction of the total number of gallons supplied from Cincinnati, we could only supply 972,937 gallons of the locomotives cleaning agent to the 11 different locations where the exact requirement is 990,522 gallons of the cleaning agent. When the bid is made for $1,821,214.39 for one year, then the net profit that is made in one year is $237,749.72