MPC Assignment

Mintendo Case

Acad Group No. 5

Sabbyasachi Sarkar PGP-19-056
Ritesh Gupta PGP-19-128
Arnab Kumar Khanra PGP-19-173
Rahul Das PGP-19-206
Ram Kumar PGP-19-207
Rohit Chakraborty PGP-19-209
 Demand Forecast
Objective: Maximize Profit Month No Promotion
Options: Sandra's plan July 100,000
Bill's plan August 110,000
No promotion plan September 130,000
Assumption: Starting Inventory = 0 October 180,000
Ending Inventory = 0 November 250,000
December 300,000

Sandra's Proposal
SP @ September 45
Bill's Proposal
SP @ November 45

Starting Workforce 300

Starting Inventory 0
Month July August September
Demand 100,000 110,000 130,000
Regular Production 50000 110000 192000
Overtime Quantity 0 0 0
Sub Contract 0 0 0
Total 50000 110000 192000
Inventory from last month 0 -50,000 -50,000
Total Quantity Available 50000 60000 142000
Hired 0 0 0
Fired 0 0 0
Staff 300 300 300
Inventory -50,000 -50,000 12,000
Inventory Carry Forward 0 0 62000
Inventory Backlog 0 0 0
Resulting Inventory 0 0 62000

Regular Production Capacity 192000 192000 192000

Overtime Capacity 48000 48000 48000

Revenue 2500000 3000000 6500000

Material Cost 12240000

Regular Production Cost 4464000
Overtime Production Cost 301500
Subcontracting Production Cost 0
Hiring Cost 90000
Firing Cost 0
Inventory Carry Forward Cost 344000
Inventory Backlog Cost 0
Total Cost 17439500
 Sandra's Proposal Bill's Proposal Item
100,000 100,000 Material Cost
110,000 110,000 Inventory Holding Cost
324,000 130,000 Marginal Cost of a Stockout
126,000 180,000 Hiring and Training Cost
175,000 465,000 Layoff Cost
300,000 210,000 Labour Hours Required
Regular Time Cost
Overtime Cost
a's Proposal Cost of Subcontracting
USD/Unit
s Proposal
USD/Unit

Ending Inventory 0
October November December Total
180,000 250,000 300,000 1,070,000
192000 211200 211200 966,400
0 800 52800 53,600
0 0 0 0
192000 212000 264000 1,020,000
12,000 24,000 -14,000
204000 236000 250000
0 30 0 30
0 0 0 0
300 330 330 1,860
24,000 -14,000 -50,000 -128,000
74000 36000 0 172,000
0 0 0 0
74000 36000 0 172,000

192000 211200 211200

48000 52800 52800

9000000 11800000 12500000 45300000

Total Revenue 45300000
Total Cost 17439500
Total Profit 27,860,500
Cost (USD) Per Toy SP 50
12 Unit Inventory June end 50,000
2 Unit/month Production capacity set by workforce
10 Unit/month Workforce June end 300
3000 Worker Regular working time 8
5000 Worker Regular work rate 15
0.25 Unit Regular work days 20
15 Hour Max Overtime 40
22.5 Hour
18 Unit
 USD/unit

by workforce

Hours
USD/Hour
/Month
Hours/Month/Worker
 Demand Forecast
Objective: Maximize Profit Month No Promotion
Options: Sandra's plan July 100,000
Bill's plan August 110,000
No promotion plan September 130,000
Assumption: Starting Inventory = 0 October 180,000
Ending Inventory = 0 November 250,000
December 300,000

Sandra's Proposal
SP @ September 45
Bill's Proposal
SP @ November 45

Starting Workforce 300

Starting Inventory 0
Month July August September
Demand 100,000 110,000 324,000
Regular Production 100000 192000 192000
Overtime Quantity 0 0 0
Sub Contract 0 0 0
Total 100000 192000 192000
Inventory from last month 0 0 82,000
Total Qunatity Available 100000 192000 274000
Hired 0 0 0
Fired 0 0 0
Staff 300 300 300
Inventory 0 82,000 -50,000
Inventory Carry Forward 50000 132000 0
Inventory Backlog 0 0 0
Resulting Inventory 50000 132000 0

Regular Production Capacity 192000 192000 192000

Overtime Capacity 48000 48000 48000

Revenue 5000000 5500000 0

Material Cost 13020000

Regular Production Cost 4320000
Overtime Production Cost 140625
Subcontracting Production Cost 0
Hiring Cost 0
Firing Cost 0
Inventory Carry Forward Cost 662000
Inventory Backlog Cost 0
Total Cost 18142625
 Sandra's Proposal Bill's Proposal Item
100,000 100,000 Material Cost
110,000 110,000 Inventory Holding Cost
324,000 130,000 Marginal Cost of a Stockout
126,000 180,000 Hiring and Training Cost
175,000 465,000 Layoff Cost
300,000 210,000 Labour Hours Required
Regular Time Cost
Overtime Cost
a's Proposal Cost of Subcontracting
USD/Unit
s Proposal
USD/Unit

Ending Inventory 0
October November December Total
126,000 175,000 300,000 1,135,000
192000 192000 192000 1,060,000
0 0 25000 25,000
0 0 0 0
192000 192000 217000 1,085,000
-50,000 16,000 33,000
142000 208000 250000
0 0 0 0
0 0 0 0
300 300 300 1,800
16,000 33,000 -50,000 31,000
66000 83000 0 331,000
0 0 0 0
66000 83000 0 331,000

192000 192000 192000

48000 48000 48000

6300000 8750000 12500000 38050000

Total Revenue 38050000
Total Cost 18142625
Total Profit 19,907,375
Cost (USD) Per Toy SP 50 USD/unit
12 Unit Inventory June end 50,000
2 Unit/month Production capacity set by workforce
10 Unit/month Workforce June end 300
3000 Worker Regular working time 8 Hours
5000 Worker Regular work rate 15 USD/Hour
0.25 Unit Regular work days 20 /Month
15 Hour Max Overtime 40 Hours/Month/Worker
22.5 Hour
18 Unit
 Demand Forecast
Objective: Maximize Profit Month No Promotion
Options: Sandra's plan July 100,000
Bill's plan August 110,000
No promotion plan September 130,000
Assumption: Starting Inventory = 0 October 180,000
Ending Inventory = 0 November 250,000
December 300,000

Sandra's Proposal
SP @ September 45
Bill's Proposal
SP @ November 45

Starting Workforce 300

Starting Inventory 0
Month July August September
Demand 100,000 110,000 130,000
Regular Production 50000 192000 192000
Overtime Quantity 0 0 0
Sub Contract 0 0 0
Total 50000 192000 192000
Inventory from last month 0 -50,000 32,000
Total Qunatity Available 50000 142000 224000
Hired 0 0 0
Fired 0 0 0
Staff 300 300 300
Inventory -50,000 32,000 94,000
Inventory Carry Forward 0 82000 144000
Inventory Backlog 0 0 0
Resulting Inventory 0 82000 144000

Regular Production Capacity 192000 192000 192000

Overtime Capacity 48000 48000 48000

Revenue 2500000 5500000 6500000

Material Cost 13740000

Regular Production Cost 4528800
Overtime Production Cost 449325
Subcontracting Production Cost 0
Hiring Cost 87000
Firing Cost 0
Inventory Carry Forward Cost 855600
Inventory Backlog Cost 0
Total Cost 19660725
 Sandra's Proposal Bill's Proposal Item
100,000 100,000 Material Cost
110,000 110,000 Inventory Holding Cost
324,000 130,000 Marginal Cost of a Stockout
126,000 180,000 Hiring and Training Cost
175,000 465,000 Layoff Cost
300,000 210,000 Labour Hours Required
Regular Time Cost
Overtime Cost
's Proposal Cost of Subcontracting
USD/Unit
Proposal
USD/Unit

Ending Inventory 0
October November December Total
180,000 465,000 210,000 1,195,000
210560 210560 210000 1,065,120
27240.0000000001 52640 0 79,880
0 0 0 0
237800 263200 210000 1,145,000
94,000 151,800 -50,000
331800 415000 160000
29 0 0 29
0 0 0 0
329 329 329 1,887
151,800 -50,000 -50,000 127,800
201800 0 0 427,800
0 0 0 0
201800 0 0 427,800

210560 210560 210560

52640 52640 52640

9000000 0 8000000 31500000

Total Revenue 31500000
Total Cost 19660725
Total Profit 11,839,275
Cost (USD) Per Toy SP 50
12 Unit Inventory June end 50,000
2 Unit/month Production capacity set by workforce
10 Unit/month Workforce June end 300
3000 Worker Regular working time 8
5000 Worker Regular work rate 15
0.25 Unit Regular work days 20
15 Hour Max Overtime 40
22.5 Hour
18 Unit
 USD/unit

by workforce

Hours
USD/Hour
/Month
Hours/Month/Worker
 Decision Making
Plan Profit (USD) Selection
No Promotion 27,860,500 1
Sandra's Proposal 19,907,375 2
Bill's Proposal 11,839,275 3

Based on the analysis, the maximum profit for the supply chain takes place at 'No promotion' plan
t 'No promotion' plan