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    Bartels Job Shop: Decision Variables

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    api-25888404
    The document compares three options for a job shop to assemble electronic portasols. Option 1 uses the existing facility, Option 2 subcontracts assembly, and Option 3 leases a parts insertion robot. It provides the decision variables, parameters, and financial results for each option, including revenue, costs, profit, cost per unit, and breakeven quantities.

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    Bartels Job Shop: Decision Variables

    Uploaded by

    api-25888404
    1K views2 pages
    The document compares three options for a job shop to assemble electronic portasols. Option 1 uses the existing facility, Option 2 subcontracts assembly, and Option 3 leases a parts insertion robot. It provides the decision variables, parameters, and financial results for each option, including revenue, costs, profit, cost per unit, and breakeven quantities.

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    The document compares three options for a job shop to assemble electronic portasols. Option 1 uses the existing facility, Option 2 subcontracts assembly, and Option 3 leases a parts insertion robot. It provides the decision variables, parameters, and financial results for each option, including revenue, costs, profit, cost per unit, and breakeven quantities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views2 pages

    Bartels Job Shop: Decision Variables

    Uploaded by

    api-25888404
    The document compares three options for a job shop to assemble electronic portasols. Option 1 uses the existing facility, Option 2 subcontracts assembly, and Option 3 leases a parts insertion robot. It provides the decision variables, parameters, and financial results for each option, including revenue, costs, profit, cost per unit, and breakeven quantities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    Bartels Job Shop

    Option 1 Option 2 Option 3


    Lease parts
    Existing insertion
    Facility Subcontract robot
    Decision Variables
    Qty (electronic portasols) 15,000 15,000 15,000
    Price $ 26.50 $ 26.50 $ 26.50

    Parameters
    Assembly Costs (ea) $ 21 $ 18 $ 11
    Fixed Costs $ - $ 42,000 $ 150,000

    Financial Results
    Revenue $ 397,500 $ 397,500 $ 397,500
    Assembly Costs $ 315,000 $ 270,000 $ 165,000
    Fixed Costs $ - $ 42,000 $ 150,000
    Total Costs $ 315,000 $ 312,000 $ 315,000
    Profit $ 82,500 $ 85,500 $ 82,500

    CM $ 5.50 $ 8.50 $ 15.50


    Breakeven 0 4,941 9,677
    Qty1 to 2 14,000
    Qty2 to 3 15,429
    Qty1 to 3 15,000
    Bartels Job Shop
    Option 1 Option 2 Option 3

    Existing Facility Subcontract Lease parts insertion robot


    Decision Variables
    Qty (electronic portasols) 15000 15000 15000
    Price 26.5 26.5 26.5

    Parameters
    Assembly Costs (ea) 21 18 11
    Fixed Costs 0 42000 150000

    Financial Results
    Revenue =B4*B5 =C4*C5 =D4*D5
    Assembly Costs =B8*B4 =C8*C4 =D8*D4
    Fixed Costs =B9 =C9 =D9
    Total Costs =B13+B14 =C13+C14 =D13+D14
    Profit =B12-B15 =C12-C15 =D12-D15

    CM =B5-B8 =C5-C8 =D5-D8


    Breakeven =B14/B18 =C14/C18 =D14/D18
    Qty1 to 2 =(B14-C14)/(B18-C18)
    Qty2 to 3 =(C14-D14)/(C18-D18)
    Qty1 to 3 =(B14-D14)/(B18-D18)

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