12.6 Outsourcing Decision Model Manufactured in-house Fixed cost Unit variable cost Purchased from supplier Unit cost $50,000.00 $125.00 Mean $175.00 S.D. $12.00 Model Min Demand volume Total manufacturing cost Total purchased cost Difference Decision Most Likely 800 1400 Max 1700 12.7 Outsourcing Decision Model Manufactured in-house Fixed cost Unit variable cost $50,000.00 $125.00 Purchased from supplier Unit cost $175.00 Model Demand volume Total manufacturing cost Total purchased cost Difference Decision Note: Cell B20 must be numerical for Analytic Solver Mean Std Dev 1500 500 12.10 Moore Pharmaceuticals Data Market size Unit (monthly Rx) revenue Unit (monthly Rx) cost Discount rate $130.00 $40.00 9% Project Costs R&D Clinical Trials Total Project Costs Model Year Market growth factor Market size Market share growth rate Market share Sales Annual Revenue Annual Costs Profit Cumulative Net Profit Net Present Value 1 2 3 Show your variable plot histograms below. 4 5 12.16 Garage Band MEAN S.D. CROWD SIZE 3000 Average Concessions Expenditure $15.00 Fixed Cost Ticket Price $10,000.00 $10.00 per person REVENUE FROM TICKETS CONCESSION SALES PROFIT PERCENTAGE BAND PROFIT 80% 400 people $3.00 per person 12.23 Koehler Vision Associates Appointments Taken for 133 appointments 150 patients per week Demand MIN 110 MAX 160 No Show Rate MIN 10% MAX 20% Capacity 125 patients per week Pre-screen Revenue $300.00 Overbooking Cost $125.00 SCHEDULED SHOW UP PRE-SCREENED OVERBOOKED for 140 appointments REVENUES COSTS NET REVENUE for 150 appointments 12.32a J&G Bank Number of Applications Cost Per Application 30000 $20.00 Approval Rate Total Approved 60.00% Maintenance Cost $10.00 Avg. Customer Charge Total Customer Charge $2,000.00 Customers paying on time stomers incurring finance charges Finance Charge Percentage 85% Percentage 3.50% Percentage of Income from Fees 7.00% of total charges Losses due to charge offs 5.00% of total charges COSTS Total Application Costs Total Maintenance Costs Total Losses INCOME Total Finance Charges Total Income From Fees PROFIT 12.32b J&G Bank Mean Number of Applications Cost Per Application S.D. 30000 $20.00 Min Approval Rate Total Approved Max 50% Avg. Customer Charge Total Customer Charge $2,000.00 Customers paying on time stomers incurring finance charges 85% Percentage Min Finance Charge Percentage Losses due to charge offs COSTS Total Application Costs Total Maintenance Costs Total Losses INCOME Total Finance Charges Total Income From Fees PROFIT 70% Mean S.D. $10.00 $1.50 Maintenance Cost Percentage of Income from Fees 4000 Max 3% 4% Min Max 6.80% 7.20% Min Max 4.60% 5.40% of total charges of total charges $250.00 Average Customer Charge has highest sensitivity with respect to its impact on Profit, followed by Losses due to charge offs and Approval Rate. 12.34 Sturgill Manufacturing Available Time per week (hrs) Shop Efficiency 120 Mean Time Part Type 1 2 3 4 5 6 Standard Deviation Part Type 1 2 3 4 5 6 Part Type 1 2 3 4 5 6 Machine A 3.5 3.4 1.8 2.4 4.2 4 Machine B Machine C 2.6 8.9 2.5 8 3.5 12.6 5.8 12.5 4.3 28 4.3 28 Machine A Machine B Machine C 0.15 0.12 0.15 0.15 0.12 0.15 0.1 0.15 0.25 0.15 0.15 0.25 0.15 0.15 0.5 0.15 0.15 0.5 Demand (Parts/Week) 42 18 6 6 6 6 Part Type 1 2 3 4 5 6 Part Type 1 2 3 4 5 6 Total Machine Time Machines Needed Employees Needed Per Shift Time Per Part Machine A Machine B Machine Time Required Machine A Machine B Machine A Machine B Machine C Machine C Machine C Total Employees