Data Analysis for a Business Making - Essay Example

?Task a. The contribution per margin for Northern Hi-Tec E. Ltd will be calculated as follows: Contribution per margin= Gross profit/ total revenue The actual calculations will predict how much contribution is each of the company’s products making in terms of the total profit gained by the company. b. The decision variables will be considered those which can be controlled by the managers. An objective function in the linear programming is the one that must be optimized in an optimization function. Constraints in a function are those hurdles that restrict the working of the function by limiting its operations. c. The model will be solved through the help of the objective function applied, in which the decisions variables will be used in terms of controlling the operations and also avoiding the constraints to get the maximized productivity. d. One of the main constraints in the functional operations was limiting the machine’s productivity due to the depreciation. Another main constraint was time management. The constraint that was not problematic was the labor issue, i.e. they worked properly. e. The reduction in the profit means either the low pricing or the higher material or labor costs. The value of the objective function will change because of the productivity concerns. Because as the material cost has increased, so a limitation will be applied on the working of the machine and the lesser productivity will be the case. f. The value of additional value of additional minute of time per week for the devices numbered 1 to 4 will be respectively as follows: 600, 390, 330, and 204. The company must add more test device time on 4th and 3rd device as they have experienced to be consuming lesser time. g. The management of the company should make the corrective measures in terms of the cost reduction techniques and profit maximizing mechanisms. The officials must hire firstly the trained engineers who must know everything about the functions of the machines and how the constraints can be avoided. The company needs maximum productivity and for that it is imperative to train the engineers or flour managers so that they already know what types of constraints can be there and must avoid them to keep the productivity maximized. Also the management must also make sure that the decision variables are only those that can really be controlled and they should be working for the interest of the company for taking the profits to maximized level, and also keeping the costs to the minimum level as that will be the key for the maximum profits. The company must also make sure that the objective functions are properly executed as they will be the important indicators for the success of the maximum productivity. Task 2: a. Mathematical expression for the linear programming function can be written as:   The constraints are as follows: These constraints actually mean that the productivity will be low if the resources are not applied efficiently, and the one reason might be the inefficiency of the labor. b. The optimal solution will require the client to follow a specific diet each day which will maximize the chances and objectives which he intends to achieve. The chocolate of 50 grams and sugar of 100 grams might be the best diet for him through which he can meet his aims. This will also incur him the minimum cost, as his problem is more intense but it’s the job of his doctor to suggest the prescriptions that can cost him less but offer him more. c. The creation of the objective function required the programming for which the matlab and java are best programs. The data can be included there along with some calculations and programming. d. Yes, the resources are fully utilized and the materials before being utilized were in stable form and that is why the product quality will also be fine. The only source that was not utilized properly was related to the labor. The management experience of lesser labor doing more work that cannot be handled by them might be the one problem that caused the lack of the productivity that was targeted earlier but could not be made. e. The labor part is not a minimum requirement as it is the driving force behind the productivity and this is the reason that the labor amount or quantity must be increased in the future, i.e. there should be labor surplus and not the deficit. The slack of labor might also be considered as bigger constraint in the productivity which will be affected if the constraint is not avoided in the initial threat. f. The increase in the price will definitely make an impact on the optimal solution in case it is included in the optimal solution plan. If the item is not included in to the plan and solution is already providing maximum savings to the client then there is no need to think about its impact on the optimal solution or the objective functions. g. Shadow price is actually the change in the objective value of the optimal solution of the optimization problem. The cause might be the different constraints that were left to be removed due to the relaxation taken by the officials. The falling shadow price can be a serious concern for the engineers as the 0 price will mean the machine shutting down. h. The consultant dietician must be performing his research on what he has to cure or what advices he has to give. The consultant must also be professionally giving the suggestions to the clients related to diet. The diet plan employed must also be the one that will really cost lesser than the client expects. The consultant must also discuss the optimal solution with the client as well as must give him the information of the objective functions and the constraints involved in it. This way the client will be more satisfied after knowing that he is being provided a good treatment and that too in the least possible cost. Read More