Essay on Management Science

Submitted By katiehocker
Words: 815
Pages: 4

Today in our meeting I’m going to be talking about a few different ways that we can make our company more successful when money is tight. I’m going to show how to maximize total profit contribution this will tell us how many bags of each model should be manufactured. Also what profit contribution can we earn on these production quantities. How many hours of production time will be scheduled for each operation and also the slack time in each operation. By figuring out these different ideas we will be saving our company money, which right now might be getting wasted and will make our company more efficient than it has ever been before. Right now Par Incorporation is a small manufacturing company, and in the future we should be looking to expand and reach more locations than we ever have before. Our distributors believe there is a market that exists for a standard model and a deluxe model. The standard model will have a profit per bag of $10.00 and the deluxe model will have a profit of $9.00 per bag. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that we can manufacture in the next three months. Looking at this situation I think it would be silly to not take our distributors up on this offer. We will be making money and this gives our company just one more way in order to grow and get our name heard. Here is some general information that is good to know before I went about solving these problems. There is an estimate of 630 hours of cutting and dyeing, 600 hours of sewing time, 708 hours of finishing time, and 135 hours of inspection and packaging time that will be available for the production of the gold bags that we will have for the next three months. Now I’m going to explain how I went about finding how to maximize total profit contribution and how many bags of each model should we manufacture. First off it helps to know what objective function means. “The mathematical expression that defines the quantity to be maximized or minimized is referred to as the objective function.” (Anderson, Sweeney, Williams, Camm, Cochram, Fry, and Ohlmann. pg. 8) The objection function for this problem is max: 10s+9D. S=quantity standard product and D=quantity deluxe product. Now in my worksheets refer back to Capital A to see how I wrote out the constraints. All of the inequalitys use a less than or equal sign the solution is all points on the line and below it. When it comes time to making the graph everything will be filled in on the graph line and below it. “A contraint expresses limitations on resources.” (Anderson, Sweeney, Williams, Camm, Cochram, Fry, and Ohlmann. pg. 8) The feasible regin is the best recommened decision. The shadded region that includes every solutions point that satisfies all constraints at the same time is also the feasible region. My graph is also on my graph paper. The optimal solution is the specific decision variable value or values provide the best output. In this problem the optimal solution occurs where the lines 1S+2/3D=708 and 7/10 +1D=630 Intersect. 3/2S + 1D=1,062…