Answer Report 1 Microsoft Excel 160 Worksheet Lo

Answer Report 1microsoft Excel 160 Answer Reportworksheet Logo Prod

Based on the provided data, the report presents a scenario where production decisions are optimized using solver in Excel to maximize profit for two products: Santa's Grotto and Advent Calendar. The solver analysis indicates the optimal production quantities for both products, respecting the given constraints, and highlights the key factors influencing profitability and resource utilization.

The core objective was to maximize profit, represented by a target cell, with the variables being the production quantities of Santa's Grotto and Advent Calendar. Constraints included maximum demand, and machine-hours available for molding and packing operations. The solver results reveal that the optimal production output aligns precisely with the demand constraints—18,000 units of Santa's Grotto and 60,000 units of Advent Calendar—indicating these are the most profitable quantities to produce under existing resource limitations.

Profit maximization is achieved with a profit of $2,001,000, primarily driven by the markup per unit, which is calculated based on selling price, material costs, and assembly costs. Santa's Grotto has a higher per-unit profit margin ($33) compared to the Advent Calendar ($24), but the decision to produce larger quantities of the Advent Calendar is constrained by machine-hours. The utilization of machine resources is perfectly aligned with the available capacity: the molding machine is fully utilized at 300 hours, while packing is under-utilized at 270 hours, leaving some slack in packing capacity.

The analysis also highlights the importance of machine-hour costs and material costs in decision-making. The molding machine costs $500 per hour, whereas the packing machine costs $800 per hour, influencing the allocation between products based on the resource constraints and profitability margins. The solver's rapid convergence within three iterations underscores the straightforwardness of the optimization problem, given the linear constraints and objectives.

Strategic implications drawn from this report suggest that increasing machine capacity could allow for higher production volumes and greater profits. Alternatively, adjusting product pricing or reducing material and assembly costs could further enhance margins. The close adherence of production to demand constraints indicates market capacity limits, which should be considered when planning for capacity expansion or market diversification.

Sample Paper For Above instruction

In the competitive landscape of product manufacturing, optimization of production resources is critical to maximizing profitability. This paper discusses the application of linear programming and solver techniques in Excel to determine optimal production levels for two products—Santa's Grotto and Advent Calendar—considering constraints such as machine-hours, demand, and costs.

Using data provided from a hypothetical production scenario, the problem was modeled with the primary goal of profit maximization. The decision variables included the quantities of each product to produce, each with distinct selling prices, material costs, and machine-hour requirements. Constraints incorporated available machine-hours for molding and packing, as well as maximum demand for each product, creating a constrained optimization problem suited for solution via Excel's Solver tool.

The solver solution indicated that maximizing profit involves producing the full demand of both products—18,000 Santa's Grotto units and 60,000 Advent Calendar units—since these quantities fall within the resource limits and yield maximum profit of $2,001,000. The problem's linear nature meant that the Solver could efficiently find an optimal solution within a few iterations, confirming the straightforward application of linear programming techniques in manufacturing scenarios.

Analysis of the solution reveals key insights into resource utilization and profitability. The molding machine is fully utilized at 300 hours, indicating capacity constraints, while the packing machine has some slack. Given the high cost of machine-hours ($500/hour for molding and $800/hour for packing), efficient allocation becomes essential for profitability. The higher margin per unit of Santa's Grotto ($33) compared to the Advent Calendar ($24) suggests that, despite lower production volume, Santa's Grotto contributes more significantly to profits on a per-unit basis.

Strategic recommendations include considering capacity expansion, particularly in molding and packing, to increase production and profits. Alternative approaches might involve cost reductions in materials or assembly or exploring higher-margin products. Additionally, the slack in packing capacity indicates potential for increasing Advent Calendar production if machine hours are increased or efficiencies improved. These decisions could provide a competitive advantage and further profitability growth.

Furthermore, the analysis highlights the importance of balancing resource costs with product margins. The high hourly costs of machinery necessitate judicious allocation, emphasizing cost-control measures and investment in more efficient equipment or processes. The study exemplifies the utility of linear programming in operational decision-making, providing a clear pathway for managers to optimize resource utilization while maintaining market demand.

In conclusion, through linear programming and the use of Excel's Solver, manufacturers can identify optimal production quantities within their resource constraints, maximizing profitability. The insights gained from the analysis suggest strategic avenues for capacity expansion, cost management, and process improvements to enhance competitive positioning and financial performance.

References

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