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You are the production manager for Margate Industrial Cleaning Enterprises (MICE). Among other things this company makes industrial cleaning fluids. The demand in 2013 for a particular cleaning fluid is 1 million litres a year. Given the uncertain economic climate you have various forecasts for future demand. One forecast suggests demand will remain constant for the next five years. A second forecast suggests that demand will be 1.3 million litres next year and increase by 5% p.a. for at least five years. A third forecast suggests that demand will be 1.4 million litres next year and increase by at least 4% p.a. for at least five years.
The machinery in use is getting old. It has been calculated that taking all the various costs into account, using the current machinery will enable a profit of 1p. per litre for the next five years, whereas new machinery, of whatever make, will permit a profit of twice that. It is anticipated that the current machinery will only last for five more years. New machinery will cost about £35,000.
My requirements:
This is the 1st part of the problem and is Decision Analises where I need the problem to be resolved+discussion+recomandation 1 page like why do we use this different tehnique,assumptions made-very important- what are the tools to help with decisions and anything else what you think that needed to be stated and helped to resolve the problem.
A calamity occurs when a worker drops a carton of strawberry yoghourt in to the machinery, causing irreparable damage. The machine is able to function but needs replacement soon. A sort list of three possible replacement machines has been drawn up. These are the Monsoon, the Ghibli and the Bora.
The company has determined a list of key decision factors and ranked the importance of these. Initial cost and ease of installation are equally important. Delivery time is twice as important as initial cost. The staff are mainly business graduates and therefore difficult to train. Ease of training staff is important and is considered three times as important as ease of installation. Finally ease of maintenance is obviously an issue and so low running costs are rated equally important as ease of training.
The three machines has been examined and ranked in the following percentages:
This is the 2nd part of the problem and is Scoring Methods where I need the problem to be solved+table+discussion +recomandation 1 page like why do we use this different tehnique,assumptions made-very important- what are the tools to help with decisions an,where the weighting come from where the factors comeand anything else what you think that needed to be stated and helped to resolve the problem.
Once the new machine has been delivered and installed and the staff have been trained to operate it, you will have to devise a production schedule for your all-purpose liquid cleaner. The cleaner has three ingredients, detergent, ammonia and lemon concentrate. Each litre of cleaner must contain:
At least 10% but no more than 15% ammonia.
At least 2% but no more than 5% lemon concentrate.
Your new machine will produce the cleaner in batches of 200,000 litres. It is produced by blending bulk cleaners that come from two different suppliers.
Supplier A sells a product which is 80% detergent and 20% ammonia. This costs £1.10 a litre.
Supplier B sells a product that is 90% detergent, 5% ammonia and 5% lemon concentrate. This costs £1.35 a litre. You must of course minimise the cost of the all-purpose liquid cleaner you produce. The company accountant has confirmed that as a result of your diligent management the only variable costs are those of the ingredients.
My requirements:
This is the 3rd part of the problem and is Linear Programs to be used and I need the problem to be solved+term.+results+what the results means and recomandation use correct formulations please 1 page like why do we use this different tehnique,assumptions made-very important- what are the tools to help with decisions and anything else what you think that needed to be stated and helped to resolve the problem.
Prepare a report for senior management that includes:
1. a table that presents information on whether to replace the machinery or not. Assume that all three forecasts are equally likely. Using Lapace, Maximin and Maximax criteria put forward the options available. Discuss the implications of your findings. (25%)
2. the use of a weighted factored decision method to determine which of the three replacements is most suitable. Discuss the issues that emerge from this. (25%)
3. (a) The formulation of a linear programming model to provide a solution to the production problem. (25%)
(b) Calculate and explain the solution to this using a method of your choice. Please attach your graph, calculations or printouts in respect of this. (25%)
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