Business Decisions

In: Business and Management

Submitted By gonnagoham
Words 531
Pages 3
Problem 2: Production Mix (35 Marks)

Objective: Maximize profit

Decision: How many mixes over the stated demand to make

Constraints: Resources available, demand

Labels:
Let R be the number of Regular Mix made
Let D be the number of Deluxe Mix made
Let H be the number of Holiday Mix made

Maximize: 3.63R + 4.40D + 4.95H

Constraints: Resources | | Almond | 0.15R + 0.20D + 0.25H <= 6000 | Brazil | 0.25R + 0.20D + 0.15H <= 7500 | Filbert | 0.25R + 0.20D + 0.15H <= 7500 | Pecan | 0.10R + 0.20D + 0.25H <= 6000 | Walnut | 0.25R + 0.20D + 0.20H <= 7500 |

Demand
R >= 10,000
D >= 3000
H >= 5000

Non-Negativity: R, D, H ≠0

Part 3. An unexpected hail storm has damaged the California almond crop and a rival company has offered Knutz 700 Kg of almonds at $10 per Kg. The offer is for the entire 700 Kg – either take all or none. The accountant notes that the original shipment of almonds cost $15,500 for 6,000 Kg or $2.75 per Kg and as such has said no to the offer. Do you agree? Support your answer with an appropriate analysis.

Yes we agree with the accountant’s decision. By running a sensitivity report, the allowable increase on the quantity of almonds provided is approximately 583.33kg. By accepting the offer of 700kg, you will be exceeding your maximum increase by 116.7kg. Therefore, you should not accept the offer because it will have a negative effect on Knutz’s profit.

Part 4. One the customers who ordered 500 Kg of holiday mix has seen demand drop in her particular store. She has asked that Knutz cancel her order without a penalty. What will be the effect on Knutz’s profit?

If Knutz cancels the customers order, Knutz will see an increase in profit. This is because producing the Holiday Mix is unprofitable for Knutz. If the components of the Holiday Mix cancelled order are redistributed to the…...

Similar Documents

Business Decisions

...Business Decisions Risk I think can be measured. Uncertainty there is not a guaranteed outcome. I believe the business portion of a company does mold it's strategy to be competitive based more on risk. They need to be concerned with payroll, stock, production, location, distribution and anything else that effects price and appeal. They know this risk by market research. If this was a small business, then it would act as the corporate level and also be concerned with uncertainty. The corporate level of a large corporation would deal with diversity, design and implement the mission and polices to be handed down to the business of it's corporation. These are risk but they are know by development of the business plans. The corporate level (also know as the top level) could also be concerned with the competition in order to give direction to the the businesses under the corporation. If a company is located in a certain region that has "X" as the competitor, and another business that sells the same thing but has "Y" as a competitor, corporation could devise a marketing plan for the business to compete against their specific competitors. For instance if Coke's biggest competitor in the US was Pepsi and in Japan it was Jolt, the corporation could devise a marketing plan in order to address the business branch competitors. The top level determines what business we will be in. The middle and lower develop plans to support the top level. What are these called? The business on......

Words: 1166 - Pages: 5

Business Decision Making

...London Churchill College | BTEC Higher National Diploma (HND) in Business | Business Decision Makingby Edina TosokiTutor: Rahaman Hasan | | LETTER OF TRANSMITTAL 29th of November 2013 Dear Mr. Rahaman Hasan, Enclosed is a formal report for your attention on the subject of Kellogg’s case analysis as per requested in September 2013 to analyze the market response to Kellogg’s products in the UK compared to the historical data of response in India focusing on the failed launch. This report includes introduction, literature, methodology, findings and analysis and finally a conclusion and recommendation section to make clear each step of the process. All data that we collected, organized and analyzed have been presented in charts and graphs for the better understanding, then a final presentation was produced to communicate the whole process through visualization. The workload that this formal report has been based on was assigned both to small groups as well joint class work, however this particular report mainly based on my individual input. During the whole preparation of this report I have tried to stay objective and record accurate information as to the best of my knowledge. Some sections of this report may reflect my own conclusions, suggestions and justifications relating to the subject. Thank you for your time reading, marking my report and giving the opportunity to learn and develop new skills by your guidance. Yours sincerely, Edina......

Words: 5712 - Pages: 23

Business Decision

...Introduction For a business to be successful, it is vital to know the market and customers profile. This can be done by an intensive research through various methods of data collection which will help to making decision about a new venture. Market research can help create a business plan, launch a new product or service, fine tune existing products and services, expand into new markets etc. It can be used to determine which portion of the population will purchase the product/service, based on variables like age, gender, location and income level. It can be found out what market characteristics your target market has. With market research companies can learn more about current and potential customers. The purpose of market research is to help companies make better business decisions about the development and marketing of new products. Market research may also aid to the marketers to understand the customer and customer behavior and also help to know how and which type of product has been satisfies the customers. According to Kotler and et al (2008)-(Pg-333),“Marketing research is the systematic design, collection, analyses and reporting of data relevant to a specific marketing situation facing on organization.” Primary Data Primary data is specific information that is collected directly by the person who analyses the data and information also doing research. Primary data are collected for the first time. This data has not been published before collection. ...

Words: 4186 - Pages: 17

Business Decisions

...between wrong decisions and bad decisions? Yes there is a difference between a wrong decision and a bad decision; a wrong decision can be surmised as an uneducated guess when you are not privy to the facts of a situation. For instance, guessing what’s behind a closed door. A bad decision is when a person makes a decision with total disregard for all the facts that would guide their choice toward the right outcome. 2. Why do good managers sometimes make wrong decisions? Bad decisions? Good managers will make wrong decisions when they do not have all the facts. Not all managers will have all the information necessary to make the correct decisions especially if the information flow is ineffective in that organization. Communication is a vital part of making the right decisions. Take for example a captain leading his troops in battle; if he is unable to communicate with them; he will be ineffective in giving orders to his men who are scattered across the battle field. Complacency is also another reason for making a wrong decision by not assessing all the options. As most situations are not unique, managers should take reasonable precaution and choose the option that provides the best outcome. If a wrong decision is made, managers should not hesitate to reverse a wrong decision and correct it before it proves more costly. Good managers sometimes make bad decision if they assume that past experiences will suite all current and or future situations. Bad decisions are also......

Words: 563 - Pages: 3

Business Decision Making

...5 HND Diploma in Business | Unit 6: Business Decision Making - Resit - Level :5 | Student name and ID number | Assessor name | | Mohit Kumar Pun | Date issued | Completion date | Submitted on | 1st August 2014 | 5thSeptember 2014 before midday | | | | Assignment title | Crossrail - Business Decision Making | ------------------------------------------------- ------------------------------------------------- Learning Outcome | Learning Outcome | AC | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(page no) | LO1 | Be able to use a variety of sources for the collection of data, both primary and secondary | 1.1 | Create a plan for the collection of primary and secondary data for a given business problem | | | | | 1.2 | Present the survey methodology and sampling frame used | | | | | 1.3 | Design a questionnaire for a given business problem | | | LO2 | Understand a range of techniques to analyse data effectively for businesspurposes | 2.1 | Create information for decision making by summarising data using representative values | | | | | 2.2 | Analyse the results to draw valid conclusions in a business context | | | | | 2.3 | Analyse data using measures of dispersion to inform a given business scenario | | | | | 2.4 | Explain how quartiles, percentiles and the correlation coefficient are used to draw useful conclusions in a business context | | | ...

Words: 2084 - Pages: 9

Accounting for Business Decision Making

...Accounting for Business Decision Making Assignment Ali Nafiz S1409011055 Submitted on 9th November, 2014 Table of Contents Task 1 Task 2 Task 3 2-4 5-7 8-10 1 Ali Nafiz S1409011055 TASK 1 a) Anhad Sdn. Bhd. Budgeted statement of profit for the year ending 31 October 2014 RM (000s) Revenue (120000 × 8)1 Less Variable overheads Direct Materials (1200 × 2) × 95%2 Direct Labour (1200 × 1.32)3 Production overheads Selling overheads Distribution overheads Contribution Less Fixed overheads7 Indirect labour Production overheads Selling overheads Distribution overheads Administration overheads Budgeted Net profit 350 800 450 150 750 2500 1576 2280 1584 6004 6405 4206 5524 4076 RM (000s) 9600 1 2 Sales volume increase by 50%, which is equal to 800000 × 150% = 1200000. And the new selling price is RM 8. Material cost per unit is RM2, which remains unchanged, and 5% discount is given on the total. 5% discount would mean the budgeted cost for 2014 would be 95% of the cost of 2013. 3 Assuming that production of one unit takes 1 hour, for 800,000 units it takes 800,000 hours, which means labour 960,000 cost per hour is = 1.2, The new cost/hr for 2014 is 1.2 × 110% = 1.32. 800000 4 5 6 Production overheads increase in proportion with the 50% increase in sales volume; 480,000 280,000 400,000 800,000 × 1200,000 = 600,000 Variable selling overheads increase in line with the sales revenue; 7200,000 × 9600,000 = 640,000. Distribution overheads increase......

Words: 2299 - Pages: 10

Business Decision Making

...Assignment front sheet Qualification Pearson BTEC Level 5 HND Diploma Business Student name Unit number and title Unit 6: Business Decision Making Assessor name James Kwok Date issued Completion date Submitted on 5th January 2015 16th February 2015 Assignment title BDM: To start-up a upstairs coffee cafe in the city(2 of 2) Learning Outcome Learning outcome Be able to produce information in appropriate formats for decision making in an organisational context Assessment Criteria 3.1 3.2 3.3 3.4 LO3 In this assessment you will have the opportunity to present evidence that shows you are able to: Produce graphs using spreadsheets and draw valid conclusions based on the information derived Create trend lines in spreadsheet graphs to assist in forecasting for specified business information Prepare a business presentation using suitable software and techniques to disseminate information effectively Produce a formal business report Use appropriate information processing tools Prepare a project plan for an activity and determine the critical path Use financial tools for decision making Task Evidence no. (Page no) 3 3 3 3 4 4 4 LO4 Be able to use softwaregenerated information to make decisions in an organisation 4.1 4.2 4.3 Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: In addition to the above PASS criteria, this......

Words: 1570 - Pages: 7

Business Decision Making

...|BANKING ACADEMY OF VIETNAM | |BTEC HND IN BUSINESS (ACCOUNTING) | | | |ASSIGNMENT COVER SHEET | |NAME OF STUDENT | | |REGISTRATION NO. | | |UNIT TITLE |Unit 6: Business Decision Making | |ASSIGNMENT TITLE |Data Analysis for Decision Making | |ASSIGNMENT NO |2 of 2 | |NAME OF ASSESSOR |MBA Le Thu Hanh | |SUBMISSION DEADLINE | ...

Words: 1303 - Pages: 6

Business Decision

...of culture Why globalization is good: Cheaper production costs and more consumers to sell to; this allows more business opportunities and availability of commodity to the consumer. Untapped markets, different services, investment opportunities. Globalization brings about growth in a countries business for some products are brought about by investors hence increasing the countries’ economy. New business solutions, new ideas are introduced to solve problems; this allows one to get solutions from the exchange of business ideas from other world countries. Why globalization is bad: It uses up finite resources more quickly example coal, oil, nuclear and gas-dependency on business resources that won’t last. Investors tend to invest in less developed countries so as to maximize their profits-the market goes to the country that the possession of the commodity. With the dollar being the world’s reserve currency, globalization can lead to huge US balance of trade deficit and other imbalances.  Globalization can move taxation from corporations.  Globalization sets up a currency with each country trying to get an export advantage by dropping the value of its currency- thus the prices of the export reducing due to increase in competition within the business market. Encourages dependence on surroundingcountries’ for essential goods and services- this affects business in such that the goods can be obtained from other countries at a cheaper price. Globalization ties countries......

Words: 460 - Pages: 2

Business Decision

... |Pearson BTEC Level 5 HND Diploma in Business | | | |Qualification | |Assessor name |Gopinath Vedula | | |Unit 6: Business Decision Making | | | |Unit Number and title | |Student name |VeselinaLicheva | | | |Criteria Reference |To achieve the criteria the evidence must show that the student is able to: |Achieved? | | | |(tick) | |LO 1 | | | |1.1 |create a plan for the collection of primary and secondary data for a given business problem |X | |1.2 ...

Words: 809 - Pages: 4

Business Decision

...that they have quality products and brand, this could also be used as a foundation to pricing their goods at a lower price. Penetration Pricing This is a strategy company looking to increase their market share undertakes. Here the price of the product is set low to attract high sales volume. As shown above, Mercedes Benz reduced its average price of its CLA vehicles to be able to reach out to its young demographics segment. Penetration pricing is not used for luxurious goods and psychographic segments as shown above. Competitive Pricing Here, the company or firm sets its price in relative to the prices of companies it perceives as its competitors. The company may decide to set its price lower, equal or higher than its competitors. The decision to set the price higher or lower is usually based on the company’s short and long term objectives. For instance Audi sets is prices slightly lower than that of Mercedes, the aim of doing that is to gain some market share. Cost Based Pricing Under this strategy the company takes into consideration the cost of production, distribution and marketing and adds a level of mark up for their profit. This isn’t however popular in the auto industry. In the car industry prices are mainly set by either of the three strategies above 3.4 PROMOTION Promotion can be regarded as the entire process of total communication by the company which a company uses in creating awareness and interest to its customer base (Brocke 2012). Promotion over the......

Words: 2699 - Pages: 11

Research & Decision-Making for Business

...The Learning Business Research Report BX2174: Research & Decision-Making for Business KARAN LAKHANPAL Student Number: 12908897 QIN YANG Student Number: 12653971 Lecturer: Dr Andre Kuah Contents 1. EXECUTIVE SUMMARY ............................................................................................ 2 2. BACKGROUND TO THE BUSINESS DECISION OR PROBLEM .............................................. 3 3. THE SPECIFIC RESEARCH OBJECTIVES TO BE ADDRESSED .............................................. 5 4. CRITICAL ANALYSIS OF THE METHODS ...................................................................... 6 5. RESULTS AND DISCUSSION ....................................................................................... 8 6. IMPLICATIONS FOR THE BUSINESS DECISION OR PROBLEM ........................................... 10 7. ETHICAL ISSUES .................................................................................................... 11 8. REFERENCES......................................................................................................... 13 9. APPENDIX ............................................................................................................ 14 The Learning Business Research Report | Campus: 10. 1 CHECKLIST OF ASSESSMENT CRITERIA .................................................................. 18 The Learning Business Research Report 1. Executive......

Words: 4438 - Pages: 18

Business Decisions

...Business Decisions To better understand the business entity that represents fair choices, we are going to take a look at a couple of unique business scenarios. Each scenario mentioned below will discuss control, taxation, and liability issues faced with each unique situation. In addition, laws and regulations in reference to starting the business will be identified for each business, coupled with risks that each business must protect itself against. Restaurant/Bar Sports bars and restaurants are a dime a dozen, but in this scenario Lou and Jose would like to venture into new horizons by opening a sports bar and restaurant where “customers can socialize and watch sporting events on large-screen TVs that hang around the bar.” Although Lou and Jose do not have enough money to boot strap their company, they do have a wealthy investor who is interested in providing capital in return for a percentage of ownership, Mariam. The business entity is a partnership firm wherein Lou and Jose will handle all activities and business decisions for the company, as Mariam acts as a sound investor by distributing funds through company investments. Taxes will be paid by each partner once the funds have been distributed to each party, according to the Taxation Policy of the U.S.A (QuickMBA, 2010). It is important to recognize the laws and regulations of a partnership before starting a business as Lou and Jose have decided to do. Each of these laws should be carefully measured by each......

Words: 2040 - Pages: 9

Business Decision Making

...BUSINESS DECISION MAKING INTRODUCTION  Johnson and Johnson is an American multinational company founded in Brunswick ,New Jersey in 1886 by American entrepreneur Robert Wood Johnson. It manufactures pharmaceuticals, medical devices and consumer products.  J&J and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. Today, it employs 120,000 people worldwide.  They are the world’s second largest manufacturer of health care products and the largest developer and manufacturer of medical treatment and diagnostic devices. EXECUTIVE SUMMARY Consumer Products Prescription Products Medical Devices and Diagnostics Is actually the smallest division but include some of them most well know products Is the second revenue earner for the company, focuses on medical needs in cardiovascular, metabolism, immunology and oncology Is the largest segment producing medical equipment, surgical systems and devices LISTERINE, NEOSPORIN, NEUTROGENA, SPLENDA, BAND-AIDS, TYLENOL,VISINE, ACUVUE, ONETOUCH, JOHNSON'S BABY PRODUCTS (LOTION, SOAP, SHAMPOO) COMPETITIVE ADVANTAGE Strong branding and customer loyalty Patient protection Diversification in research and development of new products A single focused business segment in healthcare Company structure / Management approach EXTERNAL & INTERNAL ENVIRONMENTS Consumer bargaining power Threat of entry Threat of substitutes Competition / Rivalry • The largest risk is......

Words: 1058 - Pages: 5

Business Decision Making

...BUSINESS DECISION MAKING INTRODUCTION  Johnson and Johnson is an American multinational company founded in Brunswick ,New Jersey in 1886 by American entrepreneur Robert Wood Johnson. It manufactures pharmaceuticals, medical devices and consumer products.  J&J and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. Today, it employs 120,000 people worldwide.  They are the world’s second largest manufacturer of health care products and the largest developer and manufacturer of medical treatment and diagnostic devices. Is the second revenue earner for the company, focuses on medical needs in cardiovascular, metabolism, immunology and oncology Medical Devices and Diagnostics Is actually the smallest division but include some of them most well know products Prescription Products Consumer Products EXECUTIVE SUMMARY Is the largest segment producing medical equipment, surgical systems and devices LISTERINE, NEOSPORIN, NEUTROGENA, SPLENDA, BAND-AIDS, TYLENOL,VISINE, ACUVUE, ONETOUCH, JOHNSON'S BABY PRODUCTS (LOTION, SOAP, SHAMPOO) COMPETITIVE ADVANTAGE Strong branding and customer loyalty Patient protection Diversification in research and development of new products A single focused business segment in healthcare Company structure / Management approach EXTERNAL & INTERNAL ENVIRONMENTS Consumer bargaining power Threat of entry Threat of......

Words: 1058 - Pages: 5

Xara Photo Graphic Designer 15 1 0 53605 (x86+x64) + Crack [CracksNow] 40 minutes | موسيقي | At Cooloola