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Business Decision Making Bachelor - Essay Example

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2. The manufacturer has set a limitation for the entire month's supply. The supplies from the manufacturer will not be exceeding these limits. Alphas: 25, Betas: 35 and Gammas: 8. This constraint for the entire month cannot be exceeded even if the company would like to do it.
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Business Decision Making Bachelor

Download file to see previous pages... Since these two constraints will be applied, the minimum number of units in each category is assumed to be the sold quantity every month. This would mean that the company would realise the following sales figures: alphas: 25, Betas: 30 and Gammas: 6. In order to achieve these sales figures, the initial investment required to buy these supplies from the manufacturer will be: PDS 733, 500/- which is well within the budgetary limits set (PDS 900,000). This can be achieved with in the specified budget but the total time needed to execute this job will be 1540 hours which is much ahead of the time available for this work, which is, 1100 hours and does not realise in a profit of PDS 300,000.
Alpha: 14 Beta: 24 and Gamma: 6 resulting in a time of 1100 sales hours. But the profit that could be obtained will be 174,000 only and not 300,000 targeted. In order to ensure that this profit levels are obtained, then appropriate increase in the sales man hours should be there resulting in better sales and hence better profits. ...Download file to see next pagesRead More
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