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Decision modeling and analysis Essay

Below, there is a development management inside the Better Fitness, Inc. (BFI) which makes two types of machines (BodyPlus100 and BodyPlus200). The in depth math have been done in the report in accordance with the statistics provided for its creation of the two varieties of the machines.

The raw material costs in each section consisting in the manufacture in the specific equipment (either BodyPlus100 or BodyPlus200). The labor costs are usually given which sums in the production cost of the machine to be able to calculate the entire cost for its manufacture. The net profits will be calculated and recommended the manufacture of one BodyPlus100 machine provides more profit than that is produced in the produce of one BodyPlus200 machine.

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As the net earnings made each hour in the produce of one BodyPlus100 is $24. 73 and where as, the net profit manufactured per hour in the manufacture of 1 BodyPlus200 is $19. 83 In this case concern, the company Solutions Plus is definitely an commercial chemicals business that makes specialized washing fluids and solvents to get a wide variety of applications. The main issue is that this business has been asked to ahead a bid to deliver Great United states railroad using a cleaning fluid for train locomotives. The main case is to deal with the math associated with the production expense and the shipping from two different spots (Cincinnati and Oakland, California).

The Solution In addition itself are not able to produce and deliver the complete amount of required gallons of the cleaning agent and thinking about the larger distances to send these washing agents, the shipping costs are also included as the expenditure to get manufacturing the cleaning agent. The bid has can be sent after deciding the fact that entire production from Cincinnati and Oakland, California trousers the exact requirement of the cleaning agents from eleven (11) different places in America. Since the need is certainly not exactly achieved, the supply of the cleaning agents to Pendleton is made in short supply of 17, 615 gallons.

The key reason why only Pendleton is made less than its essential deal since, the shipping and delivery costs will be more to the place from Cincinnati oh.. Also, specified that only five-hundred, 000 gallons of cleaning agent can be delivered from Cincinnati oh. and only 50, 000 gallons can be sent to any location from Oakland, California. The offer is for an agreement of couple of years. So the delivery costs can vary after one year as the fuel rates might change.

So the Director of marketing of Solution Additionally has to bet now honnetete sighting the fluctuations inside the fuel value. Hence, as a result of restriction in the total number of gallons offered from Cincinnati, we could just supply 972, 937 gallons of the locomotives cleaning agent towards the 11 several locations where the exact need is 990, 522 gallons of the cleaning agent. When the put money is made for $1, 821, 214.

39 for just one year, then the net revenue that is produced in one year is $237, 749. 72

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