THE GLOBAL BUSINESS GAME

1
THE GLOBAL BUSINESS GAME

• Subassembly Cost Minimization

2
Operations Research Methods

• Can perform What If calculations and scenarios.
• Profit Optimization.
• Cost Minimalization.
• Operations Modeling and Scheduling.

3
Excels Solver

• Uses formulas that describe the operation being
  studied.
• All systems operate with resources and
  constraints.
• Solver can optimize results or minimize costs.

4
Least-Cost Subassembly Mix

• Can purchase the least-costly Subassembly Grades.
• Low-cost Subassemblies produce low quality
  products.
• Firms need to produce at the quality levels that
  are correct for their markets.
• Need to produce the desired quality at the lowest
  possible Subassembly cost.

5
Using Solver Subassembly Cost Analysis

• TV Lands Original Subassembly Mix

Total Subassembly Mix Cost--3,063,158 Quality
Mix 8.41
6
Solvers Subassembly Mix

• Revised Subassembly Mix

Total Subassembly Mix Cost--2,870,243 Quality
Mix 8.41
7
The End