Capsim round 1

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ROUND 1:

Note: Ideal position (Pfmn and Size) is 21% important.

Change 3: Reduced MTBF (Mean Time Before Failure) from 17,500 to 17,000, since customers does not really care about durability for Daze.

Change 1: Increased Pfmn from 8.0 to 8.9.

Change 2: Decreased size from 12 to 11.1.

Change 1: Pfmn remains the same, but Size has been decreased from 11.0 to 10.6. (Importance=43%)

Marketing: Truc

Since the percentage of price of Low End is very high, which is 53%. Customer will basically look for the cheapest but nothing else. I will decrease the price to 20, since it must larger than sum of material cost and labor cost

Dixie (high end): Price is 9% important, price range is 30-40

Same as High End. Price will be 33 as last year

Your Forecast: Unit sold last year

Dune: 314, price 33.00, Price is the same but we change the size so the expected sales is 350

Promotion Sale:

Dune: $700, 46%, spend 500 this year increase to 57%

Sales Budget

Dell’s price $22.00 capacity next round $1,400, 1st shift capacity is $1,400 so i put double amount of that so $2,800 but this time i didn’t sell it and i buy 400 capacity. We lose $10,400 for investment.

Dixie price $38.00 capacity next round $900, 1st shift capacity is $900 so i put double amount of that so $1,800 but this time i didn’t sell or buy.

So what we will change in production schedule is make the number of production after adj is close to the unit sales forecast.

For example, we believe that we will sell 1300 units for Daze, so I tried to put 1300 in production schedule since we still have some inventory on hand, and then I click on recalculate, it show in the production after adj is less than 1300, which is less than the units we expect to sale, So then I tried 1400 and recalculate again. It show that we have 1386 for production after adj, which is higher than the number we expected to sale. However, if in the future, you don’t believe we can make the forecast, you can put 1300 for worst case.

Total Investments ($000) is at $10,400 -> cannot interact

Sales of Plant & Equipment is at ($10,010) -> cannot interact

Issue Stock ($000) - I issued it from $0 to $13,700 to make Cash Position for December 31, 2017 gain some money as it was higher in the negatives which was at ($83,000) down to ($70,179). I maxed it out so that the

I kept Retire Stock ($000) and Dividend Per Share at $0 because it changes important values to more negative and didn’t want that to happen.

Long Term Debt:

Retire Long Term Debt ($000) is at $0

Overtime is 0% < 0.2% decreases employee turnover and increases productivity.

Turnover rate is 10%=10%, A better workforce increases worker productivity and lowers worker turnover.

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