INTRODUCTION TO QUANTITATIVE MANAGEMENT Lab Report

INTRODUCTION TO QUANTITATIVE MANAGEMENT - Lab Report Example otal profit that can be obtained while satisfying the constraints (in this case maximum benefit of 710) gave 26 for moulding, 14 for trimming and 13 for packaging. However, these values gave a profit of 705 which is less by 5. What this means is that an increase in either of the tree variables will give a gain value that is way above the limit that the company has in stored for the items (710). Therefore, the optimal values that the manufacturing can order and make optimal profit while satisfying the constraints is 26, 14, and 13 for moulding, trimming, and packaging respectively. Besides, the maximum amount of time that each component of moulding can take is represented in the above table. From the solver output, it is apparent that the production time remained. The maximum production time utilised in the manufacture was less from the total allocated time by 2500, 1700, and 300 for moulding, trimming, and packaging respectively. The remaining time could not be accounted for because any change in any of the three variables resulted in higher increase in the total amount of time allocated for each component. Therefore, the entire time was not utilised to obtain maximum production while satisfying the constraints of the equation. The result given by the solver is the optimal selection for each component that gives a maximum profit. One would argue that since the amount of resources available was not fully utilised its sensitivity was not 100%. However, it is apparent that the sensitivity for this selection was (705 / 710) * 100= 99.2%. Though this sensitivity is not perfect, it is relatively high and appropriate. Therefore, the choice of each component given by the solver is sensitive as per the requirement to satisfy the constraints. Selection of parameters that satisfy constraints at 99% is a better option than a percentage lower because such selection should not exceed the available resource. For this reason, these values were the optimal and maximal choice

Budgeting Coursework Example | Topics and Well Written Essays - 1500 words

Budgeting - Coursework Example This is because from fifth month Nod will have sufficient cash not only to meet regular cash payments but also Nod will have sufficient cash to return the overdraft. The consideration is also required for capital expenditure that Nod is planning to incur in the beginning of 2nd year. The cost of car is $15000. Nod will generate $3000 on selling an old car and the rest ?12000 will be easily generated out of operation in next six months. This is because cash by the end of September 2011 after paying overdraft of say $800 will be $13150. Each month enough extra cash will be generated to meet $15000 cost easily. Accordingly Nod is advised to negotiate only for an overdraft of $800 in April for a period of four months. Word count: 221 d) Budgeting and business goals Budgeting has become an essential function of any business activity so much in the sense that it becomes easy to attain the purposes for which the business activity is planned for. In fact management plans to achieve several g oals when budgeting is under taken for a business activity. Under normal circumstances budgets are used for the purposes of attaining control and evaluation, communication with different concerned parties, planning, and motivation of the factors involved in the business process. â€Å"Goal setting is a characteristic of successful business and a budget is a critical part of the process. It is a financial forecast of your operating and capital activities.†(Carol Patterson)i Operating budgets are used for planning the operations to achieve strategic objectives. Operating budget draws the attention of the management toward revenue projections and regular and routine expenditure to raise that projected revenue. The management can set up goals of earning specific revenue in order to meet the required payments for the generation of that revenue and improve the entity’s liquidity to meet unforeseen expenditure and payments. In fact operating budget force the management to pla n for increasing profitability as there is direct relation between economising of the business expenditure and profitability. The main goal of planning and control is always achieved through efficient budgeting. â€Å"The budgeting system is designed to plan and control a business. However, it is common for the budget to be ‘gamed’ by its participants. For example managers may pad their budgets with excess resources. In this way, managers will have additional resources for unexpected events during the period. If the budget is being used to establish the incentive plan, then sales managers have incentives to understate the sales potential of a territory to ensure hitting their quota.†(Carl S Warren, James M. Reeve, and Jonathan Duchac)ii That way revenue or operating budget can be made objectives to be achieved by the operational staff. Incentives when linked with budgets automatically create sort of enthusiasm among the operating staff to achieve budgetary target s or goals. It is believed that businesses should always create and apply budgets in order to keep a check or track of their income and expenses. This is more applicable for small business and operations. Budgeting helps the businesses to project their profitability to be achieved over a period covered by the budget. Budgeting can spot problems and plan in advance the means to rectify those problems and issues. In a way financial