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Industry Study

Objective
Introduction Project Network LP Application (Problem, model, optimal solution/tableaus) Other Analysis Conclusion and Recommendation

OCEAN FLOW PURIFIED DRINKING WATER STATION JANUARY 2008 Date of establishment RICHARDSON HALILI Owner ANGELITO GARCIA Manager WATER Service .

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of hours per shift Cost of each service Desired profit Actual profit (average) Profit for each service (average) Customers per day (average) Quota /worker Salary of each worker (average) 8-10 hours 8-10 hours P25 per 5 gal P300.000/month P15/container 260 65 P5. of workers No.000/month P200. of workers per shift 5 5 Total working time No.000 .Data Total no.

500.000 Total Investment (initial): P2.000 .000 P15.Data Costs (per month) Electricity P16.000 Water Gas Rent Miscellaneous P25.000 P12.000 P15.

review delivery sheets and call customers for delivery schedules •Check the equipment use in the water station such as the pressure gauge •Check the motorcycles and multicab used for delivery •At the end of the day. review the accounts receivables .Summary of Daily Routine •Clean the water store upon opening •Check the store’s supplies for an early order •For monitoring.

1 M Php 2.Profit Timeline 2009 Php 1.increases every year by 9% to 13% of the previous sales based on their financial statement .4M Gross Sales based on Financial Statement .9 M 2010 2011 Php 2.

Project Network .

AON Project Scheduling .

Problem How to maximize the profit by adjusting the following variables o quota/month o number of employees o working time/ month .

total number of employees z.LP Model Current Profit: deducting all possible expenses P200000-P83000-P25000= P9200 Let: x-quota per month y.working hours per month .

Total number of employees 208 <= z <= 260-----.30000Q s.5000y .227z .times of payment per month .: Cost of production : 10x + 5000y + 227z + 30000Q <= 192540 x >= 8450-----.limit of working time Q = 1-----. t.LP Model Max P: 25x .Quota per month y >= 5-----.

. 208h/month (8h/day) and no slacks. with 9033 units.Solution Using micromanager the maximum profit is P123594 (deducting all the possible expenses. 5 employees.

Tableaus .

Tableaus .

Final Optimal Solution .

000.000 or P175. the monthly profit is either P225. Using trend method.Forecasting Application Naïve Method: Using stable series the monthly profit in year 2012 should be P200. .000.

Computation for Trend Method .

Computation for Trend Method .

Conclusion and Recommendation An increase of 582 units in the target monthly quota resulted in a maximum value of approximately P31594 more than the station’s profit. .

. the desired profit will be obtained after 18.Conclusion and Recommendation Using the Trend Equation.407 years from its starting year and when it is not selling good. it is more likely to get the desired profit in 7.889 years from the starting year. when the maximum profit is attained.

Conclusion and Recommendation Ocean Flow Purified Drinking Water Station only offers refilling services. Doing so will lead to a lower mark-up. Because of its location. it is not advisable to sell/refill bottled water. .

Reference .