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Exercise: A company has 3 factories. It has developed the profit model below, but it isn't sure of the values in the gray cells. The
Exercise: A company has 3 factories. It has developed the profit model below, but it isn't sure of the values in the gray cells. The values shown here for the "base case" are best guesses, but the company wants to test two other scenarios: (1) the high cost case, where the values in the gray cells are replaced by the values in rows 30- 31, and (2) the low cost case, where the values in the gray cells are replaced by the values in rows 34-35. Create three named scenarios called Base Case, High Cost Case, and Low Cost Case. Sales price $125 Base units produced per worker Training effectiveness factor Training investment per worker Labor cost per worker Number of workers Base production capacity Efficiency factor Units produced Profit per plant Factory 1 10 150 $100 $800 500 5,000 0.67 3,333 ($33,333) Factory 2 10 150 $200 $900 250 2,500 1.33 3,333 $141,667 Factory 3 10 150 $300 $1,200 100 1,000 2.00 2,000 $100,000 Total profit $208,333 High cost case values (15% above) Training investment per worker Labor cost per worker $115 $920 $230 $1,035 $345 $1,380 Low cost case values (15% below) Training investment per worker Labor cost per worker $85 $680 $170 $765 $255 $1,020
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