Mintendo - Case Study answers

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1、Chapter9–MintendoGameGirlTheresultsforthiscaseareobtainedusingtheaccompanyingspreadsheetMintendoCaseStudy.BasicModelThedecisionvariablesarecontainedinCellsB4:I10inworksheetpricing.Theconstraintsareasfollows:Workforcebalance(Equation8.2):CellsM5:M10Ca

2、pacity(Equation8.3):CellsN5:N10Inventorybalance(Equation8.4):CellsO5:O10Overtimelimit(similartoEquation8.5):CellsP5:P10ThedetailedcostsarecalculatedinCellsB15:I20andthetotalcostisshowninCellC22.ThenetprofitisshowninCellC25.Giventhatalldemandistobemet

3、,minimizingcostisequivalenttomaximizingprofit.Wefirstconsiderthecasewherea$5discountinanymonthincreasesdemandwithinthemonthby50%andmoves30percentofeachofthefollowingtwomonthsofdemandforward.BaseCase(Nopromotion)SetcellC27=0.RunSolver(withinoptionsyou

4、mayhavetodeselectAssumeLinearModel).ThesolutionisSandra’sPlan(PromoteinSeptember)SetCellC27=1(promotionon)andCellC28=3(September)andCellE29=5(discount).RunSolvertoobtainthefollowingsolution:Bill’sPlan(PromoteinNovember)SetCellC27=1(promotionon)andCel

5、lC28=5(November)andCellE29=5(discount).RunSolvertoobtainthefollowingsolution:Witha$5discount,Bill’splanofpromotinginNovemberisthemostprofitable.$10discountWitha$10discount,thebasecaseofofferingnodiscountstaysthesameasshownaboveandproducesaprofitof$36

6、,115,280.TocheckSandra’splan,SetCellC27=1(promotionon)andCellC28=3(September)andCellE29=10(discount).RunSolvertoobtainthefollowingsolution:TocheckBill’splan,SetCellC27=1(promotionon)andCellC28=5(November)andCellE29=10(discount).RunSolvertoobtainthefo

7、llowingsolution:Witha$10discountitisbestnottorunanypromotion.OutsourcingCostRisesto$22ChangeCellB24inSheet1to22.Toevaluatethebasecasewithoutdiscounting,setCellC27=0toobtainthefollowingsolution:Sandra’splanwitha$5discountdoesnotusesubcontractingandthu

8、scontinuestoprovideaprofitof$36,987,365.ToevaluateBill’splan,setCellC27=1,C28=5andE29=5toobtainthefollowingsolution:PromotinginNovember(Bill’splan)continuestobethemostprofitableevenifsubcontractingcostsriseto$22/unit.