Demand

Month
Workforce
Hired
Fired
Produced-in-house
Inventory
Backlog
Sub-contract
No of overtime hours
Minimise Cost

0
80

1000
0

1600
1
15
0
65
600
0
0
0
0

3000
2
75
60
0
3000
0
0
0
0

484250

Constraint
Workforce

0
0
0
0
0
0

=
=
=
=
=
=

0
0
0
0
0
0

3200
3
80
5
0
3200
0
0
0
0

3800
4
95
15
0
3800
0
0
0
0

2200
5
55
0
40
2200
0
0
0
0

Capacity

2200
6
67.5
12.5
0
2700
500
0
0
0

0<
0<
0<
0<
0<
0<

Inventory

0
<=

<=
0

=
=
=
=
=
=

0
0
0
0
0
0
0

0
<=

Overtime

0
<=

-150 <
-750 <
-800 <
-950 <
-550 <
-675 <

=
=
=
=
=
=

0
<=

0
<=

0
0
0
0
0
0

Demand
Prob:
Damand Less than
Demand More than

8000
0.11

10000
0.11

12000
0.28

14000
0.22

16000
0.18

18000
0.1

0.11
1

0.22
0.89

0.5
0.78

0.72
0.5

0.9
0.28

1
0.1

880

1100

3360

3080

2880

1800

2861100

1057100

338800

178200

1513800

2401000

MB

45 MC

60

85200
9372

295200
32472

505200
141456

566100
124542

566100
101898

566100
56610

120000
13200

330000
36300

540000
151200

540000
118800

540000
97200

540000
54000

1760

220000

660

39600

1440000
259200

1440000
144000

Prfit

540000

d
600000
66000

810000
89100

1020000
285600

1230000
270600

Expected Damand

13100

Variance

8350000

Std. Dev

2889.637

Service L

0.428571

0.857143

Order

12579.83

16184.89

Say
Profit

12580
466350

Say
Profit

12000
470700

Total Profit

1010700

16000
1114500

Part-D

16000
1114500

Demand
Prob:
Damand Less than
Demand More than

8000
0.11

10000
0.11

12000
0.28

14000
0.22

0.11
1

0.22
0.89

0.5
0.78

0.72
0.5

880

1100

3360

3080

2861100

1057100

338800

178200

MB

210000
23100

350000
38500

45

490000
137200

630000
138600

1760

220000

660

39600

Prfit

588500

Service Level should lie between .72 and .9

Calculate Marginal cost as Marginal benefit is fixed
b/w 75 and 62.5

16000
0.18

18000
0.1

0.9
0.28

1
0.1

2880
1513800

1800 Expected Damand

2401000 Variance

8350000

Std. Dev

2889.637

25 Service L

0.642857

Order

14157.91

630000 Say
63000 Profit

14000
513800

MC

630000
113400

13100

Total Profit

1102300

MB

45

MC

17.5
5

Part-D

Part-D

0.857143
16184.89

16000
1114500

Richmond,VA
Columbia,SC
Montgomery,AL
Jacksonville
Price
20% mark up
Market Area
Richmond,VA
Ral
Knox
Colu
Atla
Sava
Mont
Tall
Kack

Prod. Cost/barrel
Annual Capacity
140
145
137
135

100,000
100,000
300000

280
Brewery of Origin
Richmond,VA
Richmond,VA
Columbia,SC
Columbia,SC
Montgomery,AL
Montgomery,AL
Montgomery,AL
Montgomery,AL
Montgomery,AL

Annual Sales, Barrels

56000
31000
22000
44000
94000
13000
79000
26000
38000
403000

Richmond
Market Area
Richmond,VA
Ral
Knox
Colu
Atla
Sava
Mont
Tall
Kack

Colum
8.49
10.7
16.38
12.54
15.48
14.64
19.98
24.3
18.84

12.54
9.78
12.81
6.96
11.85
9.54
12.93
15.18
12.27

Annual Capacity
100,000
100,000
300000
100000
FC
Depriciation
Brewery of Origin
Richmond,VA
Richmond,VA
Columbia,SC
Columbia,SC
Montgomery,AL
Montgomery,AL
Montgomery,AL
Jack,mont,colum
Jack

10000000
0.066666667
Annual Sales, Barrels
64000
35000
33000
55000
141000
20000
119000
52000
76000
595000

Mont

Jack
19.98
16.35
13.8
12.93
10.2
13.8
6.96
13.65
15.18

17.13
14.25
15.48
11.16
13.8
9.54
13.8
9.72
7.68

Sales/oh expense
RoI

0.27
0.2

Revenue from Sales

Revenue from capacity unused
Cost of production
Sales Expense
Profit

Present Case
112840000
4,850,000

166600000
250,000

56000000
30466800

82380000
44982000

31,223,200

39,488,000

Richmond,VA
Columbia,SC
Montgomery,AL
Jacksonville
Price
20% mark up
Market Area
Richmond,VA
Ral
Knox
Colu
Atla
Sava
Mont
Tall
Kack

Prod. Cost/barrel
Annual Capacity
140
145
137
135

100,000
100,000
300000

280
Brewery of Origin
Richmond,VA
Richmond,VA
Columbia,SC
Columbia,SC
Montgomery,AL
Montgomery,AL
Montgomery,AL
Montgomery,AL
Montgomery,AL

Annual Sales, Barrels

56000
31000
22000
44000
94000
13000
79000
26000
38000
403000

Richmond
Market Area
Richmond,VA
Ral
Knox
Colu
Atla
Sava
Mont
Tall
Kack

Colum
8.49
10.7
16.38
12.54
15.48
14.64
19.98
24.3
18.84

12.54
9.78
12.81
6.96
11.85
9.54
12.93
15.18
12.27

Annual Capacity
100,000
100,000
300000
100000
FC
Depriciation
Brewery of Origin
Richmond,VA
Richmond,VA
Columbia,SC
Columbia,SC
Montgomery,AL
Montgomery,AL
Montgomery,AL
Jack,mont,colum
Jack

10000000
0.066666667
Annual Sales, Barrels
64000
35000
33000
55000
141000
20000
119000
52000
76000

Sales/oh expense
RoI

0.27
0.2

595000
Mont

Jack
19.98
16.35
13.8
12.93
10.2
13.8
6.96
13.65
15.18

Richmond Colum
17.13
14.25
15.48
11.16
13.8
9.54
13.8
9.72
7.68

Market Area
Richmond,VA
Ral
Knox
Colu
Atla
Sava
Mont
Tall
Kack
Supply

64000
35000
1000
0
0
0
0
0
0

0
0
20000
55000
0
20000
0
0
0

100000

95000

Present Case
Revenue from Sales
Revenue from capacity unused

112840000
4,850,000

Cost of production
Sales Expense
Transportation Cost
Profit

56000000
30466800
4014980
27,208,220

Incremental Profit

Mont

Jack
0
0
12000
0
141000
0
119000
28000
0
300000

Demand
0
0
0
0
0
0
0
24000
76000

100000 Cost

64000
35000
33000
55000
141000
20000
119000
52000
76000

New One

New Addition Contribution

166600000
28000000
250,000
82380000
44982000
5477230
34,010,770

13500000
7560000
816960
6,123,040

6,802,550

Transportation Cost

Manufacturing Cost

543360
374500
438180
382800
1438200
190800
828240
615480
583680
5395240
Total Cost

82375000
87770240