Submitted by: Submitted by syamioc
Views: 611
Words: 915
Pages: 4
Category: Business and Industry
Date Submitted: 03/02/2011 05:21 PM
Assume that operations will be able to ensure that all buffer sizes are same as they were in 1996 for all the three options (status 20 buffer continues at 2 weeks). Which of the options would you recommend why?
i. Capture 60% of the 4 week Market, 30% of the 8 week market and 10% of the 12 week market.
| |8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental |
| | | | | | |($) |
|Expenditure ($) : |142543.80 | | | | | |
|Contribution ($) : |91456.20 | | | | | |
|Depreciation ($) : |88142.95 | | | | | |
|Profit ($) : |3313.25 | | | | | |
|Profit per M/c : |0.24 | | | | | |
| |
ii. Capture 40% of the 4 week Market, 40% of the 8 week market and 20% of the 12 week market.
|8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental($) | | | |TIV : |1000 |30 |1500 |40 |600 |25 | | | |Total Units: |8000 |240000 |6000 |240000 |7200 |180000 | | | | |40% | |40% | |20% | | | | | |8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental($) | | | | |400 |30 |600 |40 |120 |25 | | | |Total Units: |3200 |96000 |2400 |96000 |1440 |36000 | | | | | | | | | | | | | | |Customer |Receiving |Status 24 |Status 40 |Status 41 |Status 42 |Status 20 |Total | |Throughput Units/ Week |1120 |1120 |784 |454 |454 |454 |1120 |5505 |...