Term Paper (Business Mathematics)

8/19/2019 Term Paper (Business Mathematics)

1/34

“Application of Business Mathematics in Automobile Industry of Bangladesh”

1.0 Introduction:

Business mathematics seeks to solve economic problems by means of methods and concepts

provided in the sphere of mathematical science.

It is clear to everyone that bankers crunch numbers on a daily basis. However, one also comes

upon mathematics everywhere where the future developments and trends are to be determined.

Business mathematics is all about how the problems from the realm of business and technology

can be translated into the language of mathematics and then be solved by means of mathematical

models. Quite often this involves more than one mathematical model - what makes the matter

even more exciting

Business mathematics may be define different mathematical formulas or mathematical steps

which are taken for development in business. !arge number of business theories which is used to

solve business problems are included in business mathematics. "rom this simple definition, we

find that business mathematics is nothing more than different formulas and theories like interest

rate, annuity rate, matrix theory, linear programming theory and probability theory and many

more. #ith these formulas and theories business can calculate many solutions of different

problems.

Business mathematics is mathematics used by commercial enterprises to record and manage

business operations. $ommercial organi%ations use mathematics in accounting, inventory

management, marketing, sales forecasting, and financial analysis. &athematics typically used in

commerce includes elementary arithmetic, elementary algebra, statistics and probability.

Business management can be done more effective in some cases by use of more advanced

mathematics such as calculus, matrix algebra and linear programming.

2.0 Business Mathematics:#ithout mathematics there would be no '('s, no weather forecasts, no barcode on chocolate

bar, no online shopping, and also no possibilities for surfing the web for downloading favorite

ring tones. $hallenges such as these show up in business on a daily basis and can be efficiently

solved by the help of mathematical methods) in business mathematics we will not only learn how

1


2/34


to calculate and analy%e, but also how to sort out open *uestions into business contexts and solve

them, often bringing about substantial societal benefits.

By occupying our self with business mathematics, we will learn how to think out of the box,

sharpen our ability to think in abstract terms, and train ourself how to more precisely formulate

and structure causal relationships.

2.1 Use of Business Mathematics:

&athematics is used in most aspects of daily life. &any of the top +obs such as business

consultants, computer consultants, airline pilots, company directors and a host of others re*uire a

solid understanding of basic mathematics, and in some cases re*uire a *uite detailed knowledge

of mathematics. It also plays important role in business, like Business mathematics bycommercial enterprises to record and manage business operations. &athematics typically used in

commerce includes elementary arithmetic, such as fractions, decimals, and percentages,

elementary algebra, statistics and probability. Business management can be made more effective

in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear

programming.

$ommercial organi%ations use mathematics in accounting, inventory management, marketing,

sales forecasting, and financial analysis.

In cademia, Business &athematics includes mathematics courses taken at an undergraduate

level by business students. hese courses are slightly less difficult and do not always go into the

same depth as other mathematics courses for people ma+oring in mathematics or science fields.

he two most common math courses taken in this form are Business $alculus and Business

/tatistics. 0xamples used for problems in these courses are usually real-life problems from the

business world. n example of the differences in coursework from a business mathematics

course and a regular mathematics course would be calculus. In a regular calculus course, students

would study trigonometric functions. Business calculus would not study trigonometric functions

because it would be time- consuming and useless to most business students, except perhaps

economics ma+ors.

2


3/34


0conomics ma+ors who plan to continue economics in graduate school are strongly encouraged

to take regular calculus instead of business calculus, as well as linear algebra and other advanced

math courses.

1ther sub+ects typically covered in business mathematics curriculum include)

&atrix algebra

!inear programming

2robability theory

nother meaning of business mathematics, sometimes called commercial math or consumer

math, is a group of practical sub+ects used in commerce and everyday life. In schools, these

sub+ects are often taught to students who are not planning a university education.

n undergrad or graduate business math course might include a review of elementary arithmetic,

including fractions, decimals, and percentages. 0lementary algebra is often included as well, in

the context of solving practical business problems. he practical applications typically include

checking accounts, price discounts, markups and markdowns, payroll calculations, simple and

compound interest, consumer and business credit, and mortgages. he emphasis in these courses

is on computational skills and their practical application, with practical application

predominating. "or example, while computational formulas are covered in the material on

interest and mortgages, the use of prepared tables based on those formulas is also presented and

emphasi%ed. &athematics can provide powerful support for business decisions. In their later

business careers, this will motivate them to consult with mathematicians and employ effective

*uantitative methods.

&athematics provides many important tools for economics and other business fields. However,

our discipline does not profit from this work when students 3who later become part of the general

public4 are unaware of its existence.

#hy do business consultants and directors need to know math5 you may ask. Business is all

about selling a product or service to make money. ll transactions within a business have to be

recorded in the $ompany accounts and *uite often involve very large sums of money. /o for

3


4/34


example, you need to be able to estimate the effect of changing numbers in the accounts when

trying to work out your expected performance for next year.

lso businesses rely heavily on using percentages, in particular anyone who works as a sales

person will need to be *uick at mental arithmetic, approximation and in working out percentages.

he more percentage discount you give a customer when you sell them a product, the less profit

your company will make 3and *uite often the less you will be paid4 so it really does pay to know

your math. If you work as a sales assistant in many stores you now need to have the ability to

calculate the cost of goods and change the customers re*uire without using the till.

Businesses like to know that you can cope if the machines break down and also they believe that

you can give better customer service if you can respond to customers who know their

mathematics.

"inally, there are +obs around where you can escape from using any math at all - refuse collector,

builder6s laborer, farm hand etc. However, when you invest your hard earned cash in the bank or

building society or get a loan - how do you know that you are not being ripped off5 7ou need to

use math to calculate compound interest rates 3to see how much your savings can grow4. 7ou

also need to use math to understand the monthly percentages, which are added to your credit

cards or bank loans. his is a good reason to understand mathematics.

2.2 Advantages of Business Mathematics:

- #ith interest rate of math, businessman can calculate the interest on debt, loan or bonds.

- #ith matrix, businessman can calculate salary bill of different department and branches.

- #ith !inear programming, business can determine the *uantity of two products at which

profit is maximi%e or cost is minimi%e.

- #ith discounting and factoring techni*ue businessman can calculate present value of bill,

rate of discounting the bill and banker6s gain.

- #ith currency translation formula of math, businessman can cost of currency between

two countries.

4


5/34


- #ith ssignment solution techni*ue businessman can solve transportation problems.

- !arge number of business estimations are done on the basis of probability theory of

business mathematics.

- &arket research bureau can use consistency data theory of business mathematics for

calculating estimating profit, capital and sale of business.

3.0 Industries of Bangladesh:

his is a list of notable companies based in Bangladesh, grouped by their Industry $lassification

Benchmark sector.

8. $onglomerates9. Home extile and :&;


6/34


a few large car plants which assemble the &itsubishi 2a+ero /port, Hino bus, and also the ata

bus and motorcycles.

In 9CC, the &alaysian gate group proposed to build a car manufacturing plant in Bangladesh

in cooperation with #alton, which itself is preparing to produce motorcycles. In the same year,

car manufacturing company agE announced that they would build their third factory in

Bangladesh, aiming for exporting. he plant is to be completed by 9C89. In "ebruary 9C8C,

Fapanese car manufacturer &itsubishi officially proposed to the Bangladesh government to

manufacture the &itsubishi 2a+ero /port in collaboration with 2ragoti Industries, with a goal of

production in 9C88.

• utomobile companies in Bangladesh

•

2ragoti• Bangladesh &achine ools "actory

• ftab utomobiles

• H/ 0nterprise

• &otors Bangladesh.3F( with Gitol-Giloy4.

• tlas Bangladesh !td.

• #alton Hi-ech Industries !td.

• :unner utomobiles

• /inger Bangladesh !imited.

• Bangladesh Honda 2rivate !td.

• agE Bangladesh• Dttara utomobile &anufacturers !td

4.1 ragoti

2resent 2ragoti Industries was established in 8?? as ;handhara Industries by &: Habibulah, a

pasthun and a retired army &a+or ;eneral from 2akistan rmy. He established 2ragati 3then

;handhara Industries4 with +oint venture with ;eneral &otors. In late ?C6s 2ragati rolled out

(auxhall (iva cars and Bedford trucks. Habibullah also set up a factory at arachi, but 2ragati or

;handhara Industries was more advanced and larger. ;en Habibullah6s son, &a+ li Quli han

flew out of 'haka during end of independence of Bangladesh. Dpon independence of

Bangladesh, the government nationali%ed the company and renamed it 2ragoti Industries.

6


7/34


2rogoti Industries continued assembling (auxhall (iva cars, a luxurious sedan car of that time

and showed in sia 8@9 rade fair in with caption Bangladesh produce *uality.

hings decline since 8ACs and no more assembling were taking part only +oining $' for large

vehicles.

However, in 9C8C, Fapanese car giant &itsubishi $orporation led by sia :egional &anager

a%uhide 1gata made a formal proposal to Bangladesh government to manufacture &itsubishi

!ancer /edan and &itsubishi 2a+ero /port in 2ragoti, which already has been assembling

&itsubishi 2a+ero /port since last few years. long with 2a+ero /port, it also assembles ata

&otors buses and mini trucks, shok !eyland minibuses.'ue to cheap labour cost, the company

officials hoping to reduce the price of cars that will be built here are heavily comparing the same

cars manufactured elsewhere

4.2 Bangladesh Machine !ools "actory

Bangladesh &achine ools "actory 3B&"4 !td. is one of the largest company enterprise of its

kind in Bangladesh. It is located at ;a%ipur about =Ckm away from 'haka.

he factory has an area of 9=.>> acres with a covered area of ?C


8/34


the private sector of Bangladesh. he $ompany is mainly a vehicle assembler and body

fabricator but has been successfully assembling oyota Hino vehicles for Bangladesh market

since 8A9.

he $ompany was listed with 'haka /tock 0xchange !imited and $hittagong /tock 0xchange

!imited in the year 8A@ and 8? respectively. he principal activities of the $ompany

throughout the period were assembling of oyota !and $ruiser soft topJ 2ick-up, !and $ruiser

2rado, Hino Bus, Hino &ini BusJ ruck with a yearly production capacity of 9=CC units of

vehicles in < shifts. he $ompany have also < fully owned subsidiary companies, e.g. Gavana

Batteries !imited, Gavana "urniture !imited and Gavana 2aints !imited.

he companyKs motto is 6Better 2roduct Better /ervice6 and our goal is 6o be the Go. 8 in the

transport sector of the $ountry.

HIG1 buses are widely operated in all the routes of the country. they have also introduced

environmental friendly 3$G; driven4 8F& model HIG1 Bus for the first time in

Bangladesh. o provide highest luxury in the road, ftab utomobiles !imited has recently

introduced 6HIG1 :&9/6 model which is the most luxurious transport in the country.

1n the other hand, Hino mini-bus model 6HIG1 "B9#;E6 has been very popular throughout

the country. "urther HIG1 luxury buses are also plying in the International :outes, e.g. 'haka L

olkataL'haka and 'haka L gartolaL'haka.

he Bus Body Building Dnit of the $ompany has also been moderni%ed by introducing high-tech

e*uipments. In the Body Building Dnit, fully automatic machineries has been imported from

Italy and has been converted into utomated 2aint Booth, where vehicles including :&-9 3Gew

model4 buses are being painted with fully automation ensuing international *uality.

ftab utomobiles ltd has +oined with Indian &ega giant &ahindra ;roup and became the sole

distributor of their &ahindra wo #heelers in Bangladesh.

'ate of incorporation

/ep, 8?@ &ay, 8A8 3$onverted to 2ublic !td. $o.4 Fuly, 8A9 3/tarted $ommercial production4

'escription of pro+ect )

8


9/34


ssembling-cum-progressive manufacturing plant

2aint manufacturing unit

Batten manufacturing unit

Body "abrication unit.

"urniture unit

&otorcycle Dnit

2roduction capacity 37early4

!and cruiser Feep 89CC

Hino Bus ?CC

Hino ruck ?CC

/anction working shift ) /ingle shift of operation of A3eight4 hoursJ day

Gumber of normal working days ) 9@@ days in a year.

"actory :esources

!and 3factory4 89.>,9


10/34


4.( !A!A Motors Bangladesh.)*+ ,ith -itol-iloy/.

ata &otors !imited is IndiaKs largest automobile company, with consolidated revenues of IG:

9,


11/34


India6s largest two-wheeler maker Hero &oto$orp started a +oint venture with BangladeshKs

Gitol Giloy group and the two plan to invest around D/' =C million 3over :s 9=C crore4 in next

five years.

he +oint venture, in which Hero &oto$orp will hold >> per cent stake and rest will lie with the

Bangladeshi partner, plans to set up a new manufacturing facility which will have an annual

capacity of 8.> lakh units when fully functional by second *uarter of 9C8>-8?.

he plant in Bangladesh will be the the first full-fledged manufacturing facility for the Indian

two-wheeler ma+or outside India.

ccording to the company there will be a total e*uity in+ection of D/' 89.? million in a ratio of

>>)=> over a period of two years. he new venture will have a capex of D/' 9


12/34


:unner utomobiles !td. is a ma+or automobile company in Bangladesh. /ince 9CCC :unner has

manufactured ten different motorcycles ranging in si%e from >Ccc to 8cc, and in Govember

9C89 new launched :unner urbo 8>Ccc.

:unner utomobiles !imited 3:!4, the flagship company of :unner ;roup manufacturing

motorcycles, started its +ourney in the year 9CCC. he organi%ation has over @CC employees. In

the past 8C years, the company has invested a large amount of capital to introduce complete set

of advanced production technology and e*uipment. ill now, the company6s production capacity

has reached >CC motorcycles per day. :!6s products cover = series of motorcycles ranging from

>C cc to 8>C cc, and about 89 models of motorcycles.

It is to be mentioned here that to create industry friendly environment, :unner ;roup is not only

engaged in making the gradual development to become a complete motorcycle manufacturer, but

also providing technical support, incentives and whole hearted co-operation to the progressive,

small medium entrepreneurs to build factory for spare parts and accessories of motorcycles.

/pare parts like motorcycle seat, different cables like) break cable, clutch cable etc., wiring

harness, tyre, tube, battery, plastic components 3side cover, indicator light, head light, fender4 and

many other parts and accessories are being utili%ed in runner motorcycles of different models. ll

those entrepreneurs are financially benefitted and employment opportunities for good no of

people are created.

By earning good reputation, :! has captured the domestic market as an avant-garde in this

hori%on. t present :! has more than 9CC dealers and over =CC sales centers run by trained

dealer staff. :! is selling the highest *uantity of motorcycles in the domestic market as a

manufacturer. :! is also the market leader as regards to AC $$ motorcycle.

:!. has established its motorcycle manufacturing factory in Bhaluka, &ymensingh. hefactory is constructed on pre-fabricated steel structure on its premises of acres with a covered

space of over 9CC,CCC sft. &anagement experts, engineers, skilled technicians and others totaling

about =>C members are working in the factory in a professional and hygienic atmosphere. he

factory has complete motorcycle production lines which include pressing, welding, painting,

engine assembly, motor cycle assembly and *uality control. It has the production capacity of

12


13/34


manufacturing >CC motorcycles per day. fter manufacturing all motorcycles and their

components are tested in the computeri%ed testing line and checked by *uality control personnel

before making delivery. :! obtained government approval as motorcycle manufacturer from

Bangladesh :oad ransport uthority 3B:4 after a thorough *uality testing by Bangladesh

Dniversity of 0ngineering and echnology 3BD04

4.6 Bangladesh $onda rivate td.

Bangladesh Honda 2rivate !td 3BH2!4 started bike assembling Fune 9C8< this year. BH2! is a

+oint venture company 3F($4 of Bangladesh /teel and 0ngineering $orporation 3B/0$4 and

Honda, a Fapanese automaker, with their share ratio


14/34


1fficials at the aga% Bangladesh said it wants to manufacture cars in Bangladesh, mainly

because of its low labour cost and the advantage it en+oys in export to neighbouring countries

and 0urope.

agE orea has already bought C acres of land near the countryKs capital city of 'haka to set

up an assembly plant. he facility is completely set up in 9C89.

he company, a /outh orean-:ussian +oint venture, decided on establishing a plant in

Bangladesh owing to a combination of low labour costs and the regionKs strategic location for the

export market. agE became the first vehicle manufacturer in the country.

M sedan costs D/N8C,CCC in /outh orea but we can reduce the cost here by around D/N


15/34


aga% (ega

aga% &aster

Hyundai brand

Hyundai ccent !$

Hyundai /onata 0"

Hyundai 2orter III

Hyundai 0lantra P'

Hyundai /anta "e /&

Hyundai $ounty

B7' brand

B7' "<

1n Fanuary 98, 9C8= the ag% $ompany was declared bankrupt.

4.11 Uttara Automo#ile Manufacturers td

Dttara ;roup of $ompanies was established in &arch 8@9. he ;roup is one of the leading

industrial, trading and agency houses and also represents countryKs largest automobile sector.

Dttara ;roup of $ompanies 3D;$4 a private limited company offers wide range of multi-

disciplinary trading and marketing services is aimed at and fully geared to achieve a sustainable

break-through in the business world. he trading sector mainly holds the distributorship of

Fapanese and Indian origin automobile

roduction ines

ssembling &anufacturing /ole 'istributon

&anufacturer

R


16/34


R 9-#heeler Ba+a+ &otor $ycle

R Isu%u $ommercial (ehicle

R /wara+ &a%da $ommercial (ehicles

/ole distributor

R /u%uki (ehicles

R &aruti (ehicles

R Bridgestone yre

R Isu%u (ehicles

R /wara+ a%da (ehicles

R :e-treading yre.

R /awafu+i, /u%uki /cott 0nglish ;enerator

R ;/ Battery Indonesia

&anufacturer

R nit "abrics

R nit ;arments, #oven ;arments

R /ewing hread

R 2harmaceuticals

Bangladesh. small country in /outh sia. 2eople call Bangladesh M country of huge

possibilityO. 0ven &any foreign investors have nominated Bangladesh as a country of safe

investment. But, in Bangladesh, no car industry has been established.

16


17/34


utomotive Industry is currently one of the most important industries of the world. hough the

industry found out itKs introduction in D/ and ;ermany, but now, Fapan and $hina are the

countries having worldKs largest automotive industries. 1ther countries of the world also

currently are keeping contribution in this industry.

/ince the population of this country is increasing day by day, the demand for automotive is also

increasing as well. /ince there is no official automotive industry in the country, thatKs why, we

have to import cars from abroad by paying high amount of taxes. axes are being increased, but

peopleKs earning hasnKt been increased that much. But, /ituation could have been different if

there was even only one automotive industry in Bangladesh. 1rdinary middle class Bangladeshi

people could have bought cars at reasonable price, unemployed people could have been given

employment in automotive industry, moreover, and we could have achieved a good national

;'2.

$urrently in Bangladesh, there are many new and reconditioned cars are available of different

companies. But there is no local car or automotive industry yet. But, a state running company

called M2rogatiO has been manufacturing &itsubishi vehicles at a low rate. hough there is no

automotive industry in the country, but there are some companies that manufacture motorcycle.

/ince, two stroke engine vehicles are banned in the country, so that the demand of motorcycle is

being increased as well in the country. In 9CC


18/34


%'ecial 8orres'ondent

ransportation is one of the ma+or industrial sectors of a society. s the country is developing

more and more, the demand for vehicles is also rising. 1ver the last few years, the

unemployment rate went down and foreign investment increased. s a result, many individuals

can now afford personal transportation facility. 0specially in capital 'haka and port city

$hittagong the demand of cars, motorbikes and commercial vehicles is much higher.

9nline vehicles maret'lace

2eople tend to live life much easier than before and it all started with the touch of technology.

$ar9hese days there is an online marketplace for every important thing in life. utomobile

definitely deserves an individual marketplace. $armudi.com.bd is the only and first vehicles

marketplace in Bangladesh. (ehicles from many dealers are available there with all the details.

here are also general classified sites where you can buy and sell vehicles. But when in the D/

there is excellent vehicles marketplace like autotraders.com and in ;ermany mobile.de, it makes

sense to have $armudi in Bangladesh.

!he to' vehicle #rand

oyota has always been the favorite brand for the people of Bangladesh. his Fapanese

manufacturer is in selling the most amounts of cars in the world 3oyota corolla is the best-

selling model of the world4. he production of oyota cars is ever increasing in Bangladesh.

0ven for commercial vehicles this is still the favorite brand. he Indian brand Ba+a+ is most

popular for motorbikes. :ecently Bangladeshi Brand #alton is also coming on "ocus 3nnual

production 9CC,CCC4 for motorcycles. By 9C8> they are going to enter the automotive industry.

!raffic concern

s the traffic is currently one of the ma+or concerns of 'haka, many people especially the young

generation is preferring motorbikes as the best option of private transportation. here are many

ongoing flyover pro+ects therefore the situation should be improved over time.

&nvironmental concern

18


19/34


(ehicles are the ma+or cause of air pollution in 'haka. 0specially vehicles that run in diesel,

pollutes the air in greater level. "rench company :enault manufactured wi%y, "ord brought he

"ocus 0lectric which completely runs on electric power and are not harmful for environment at

all. But in Bangladesh, there is probably no single electric car charge station and the

environmental awareness is much less than the industriali%ed developed countries in the west.

herefore it may take a long time for Bangladesh to start importing electric cars. But $G; auto

rickshaws have been a great alternative so far.

It is clear that the vehicles industry will grow more and more over time as districts like /ylhet,

hulna etc. are also being developed faster. lso more and more brands are being interested in

opening manufacturing factories in Bangladesh.

.0 A''lication and Im'lication in Automo#ile Industry

.1 $o, math is used in the 'rocess of #uilding automo#iles

;rafting

rtists and car designers who draw models of cars for production need to understand perspective

to make their drawings and blueprints look right. his includes knowledge of angles and line

lengths, as well as different geometric shapes. $ar wheels, for instance, are really circles, hood

tops are arcs, and windows are *uadrilaterals.

arts

0ach part of an automobile has to fit together like a glove, or the automobile wonKt work

properly or be safe. &ath is used to measure every part and to make sure those parts are the right

si%e to come together as designed. his includes everything from the dimensions of screws to the

width of the frame.

Assem#ly

&uch of the assembly of cars now is done with the help of robots and other technology. he

robots are controlled by speciali%ed computer programs, and these programs must specify exact

parameters for operation. hey must tell the robot, for instance, to hoist a part x number of feet,

19


20/34


apply x pounds of pressure, and distribute x gallons of paint per s*uare inch. dditionally, the

assembly line must be built under exact dimensions, so there is ample room for assembly to

occur safely and efficiently if a robot arm needs to swing back and forth, for example, the robot

needs to be positioned to have a certain number of feet in clearance.

ricing

uto manufacturers want to make a profit on the cars they sell, they have to keep track of the

cost of every single part. &ath is used to calculate which parts manufacturer can deliver the best

price on needed parts and materials. It also used to determine the final cost of the vehicle. If parts

cost x taka and labor costs y, and the company wants to make a profit percentage of %, for

example, then the company would use the following formula to determine the sell price) total

cost T 3xUy4%U3xUy4

roduction 5atio

&ath is used to determine how many cars can be produced an hour, day, week or month. If an

auto manufacturer receives an order from corporate to increase production by x cars a day, for

example, the speed of the assembly line has to be ad+usted by a particular percentage to

accommodate the number of cars needed. ll of the robots of the assembly line would need to

have their speeds ad+usted through their programming or manually by the same percentage.

roduction !ime

$ertain aspects of auto manufacturing must occur under specific time parameters. 2aint, for

instances, has to cure for a specific amount of time. &ath is used to determine how long that time

needs to be under a specific temperature given the chemical composition of the paint.

roduct lanning

utomobile bodies might be born in the imagination of designers, but the car itself starts out

with market analysis. 0very car sold has to fit into a certain niche, and compete with others in

that niche if there are any. product planner6s +ob is to analy%e market data, figure out what6s

selling, where it6s selling and for how much. 2roduct planners have to look at horsepower,

20


21/34


weight, fuel economy, and dimensional data and send their ideal specifications the engineering

and design departments. In a very big way then, it6s the product planner6s heavily math-intensive

market analysis that dictates almost every critical dimension and specification of the finished

product.

8hassis &ngineering

n engineer6s primary +ob is to build a chassis and components to meet the product planner6s

specifications -- which is a tad more involved than it sounds. $omputer-aided modeling has done

a lot for chassis engineers, who can now digitally build a chassis in a computer, and crash

test it over and over again using sophisticated calculus and physics algorithms. 2hysics

modeling has become a field of mathematics and science in its own right, and the results of that

modeling affect every aspect of chassis design and material use. ;eometry and trigonometry are

all-important elements of suspension design, as they are pretty much everywhere else a load-

bearing component has to bolt to another one.

&


22/34


pillars, supports, dashboards and steering wheels because of the airbags. nd all of these

elements have to work together to make for an interior layout that6s safe, convenient, and

comfortable and hopefully good looking.

Manufacture

fter all of the design elements are in place, the cars off to the assembly line. #ith all of the

robots involved in today6s manufacturing process, there6s scarcely a point in it that isn6t

absolutely reliant on computer calculations, geometry, trigonometry, welding and material

physics to measure, machine and assemble components. #ith today6s manufacturing processes,

everything has to be measured to the nanometer, finished and fit precisely in. &athematics even

come into play in workflow analysis, as manufacturers are always looking for ways to make the

most efficient use of their workers6 and robots6 time. oyota is famous for thisV its kai%en

system of continuous improvement by constant analysis has long been an industry standard in

production.

8om'letion and ;elivery

car6s not through with math once it is built. fter production, a certain number go into product

testing or *uality control. /ome are sent off to be crash tested, where physics has the final say on

the production run. 1thers are road-tested on a test track, where precise measurements are taken

of the car6s acoustic *ualities, ride, handling, power output and emissions. It takes math -- a lot of

math -- to gather and correlate all of these results. "inally, a car has to go through a logistical

process for delivery. Here, time and distance tables are calculated, delivery costs are tabulated,

and the car becomes +ust another tracking number in a vast system until it finally arrives on the

dealership lot. 1nce there the owner takes possession and drives away, never knowing that his

newest pri%e is a machine made of numbers from beginning to end.

.2 8once'ts of Mathematics

&any concepts have been used in auto mobile engineering of which we are discussing some core

business mathematics concepts.

22


23/34


-um#er !heory

Gumber theory is the study of the set of positive whole numbers which are often called the set of

natural numbers.

#hole Gumbers are simply the numbers C, 8, 9, , 3and so on4

#hole numbers are used in the tachometer or :2& gauge of an auto mobile.

"unction

function relates an input to an output.In mathematics, a function is a relation between a set of

inputs and a set of permissible outputs with the property that each input is related to exactly one

output. n example is the function that relates each real number x to its s*uare x9. he output of

a function of corresponding to an input x is denoted by f3x4 3read f of x4. In this example, if the

input is W


24/34


0xample) t an automobile company, the number of units produced, f3x4, is dependent on the

number of employees, x. his company6s production function is f3x4 T 93x 9C49 U A. How many

units will be produced when there are 8= employees5

0xample) company6s long-run production function is where * is the number of

units produced, is the amount of capital used per day, and ! is the amount of labor used per

day. How many units are produced if daily capital is ake 9>? and daily labor is A8 individuals5

iner function in analy=ing financial statements

24


25/34


o analy%e financial statements linear function can be used. "or example we have tlas

Bangladesh !td. companyKs three *uarters data for financial year 9C89 and 9C8


26/34


>,CCC,CCC 8C,CCC,CCC 8>,CCC,CCC 9C,CCC,CCC 9>,CCC,CCC ,CCC,CCC

8C,CCC,CCC

8>,CCC,CCC

9C,CCC,CCC

9>,CCC,CCC

8,8AA

8?,A,=?

8,@A9,AA=8.==

rofit vs. Administration> %elling ? "inancial &


27/34


he :adius is the distance from the center to the edge.

he 'iameter starts at one side of the circle, goes through the center and ends on the other side.

he $ircumference is the distance around the edge of the circle.

/teering #heel is made based on circle concept.

27


28/34


%et !heory

/et theory is the branch of mathematical logic that studies sets, which are collections of ob+ects.

lthough any type of ob+ect can be collected into a set, set theory is applied most often to ob+ects

that are relevant to mathematics. he language of set theory can be used in the definitions of

nearly all mathematical ob+ects.

(enn diagram or set diagram is a diagram that shows all possible logical relations between a

finite collections of different sets.

he intersection Y B of two sets and B is the set that contains all elements of that also

belong to B 3or e*uivalently, all elements of B that also belong to 4, but no other elements.

s example, Intersection of set theory is used in color mixing of auto mobile industry.

28


29/34


Breaeven oint

MBreakevenO can be explained in a few different ways. ItKs the point at which total sales are e*ual

to total expenses. ItKs the minimum revenue volume a dealership must generate to avoid a loss.

ItKs where net income is e*ual to %ero and sales are e*ual to variable costs plus fixed costs.

o calculate breakeven point, we need to understand a few terms)

"i


30/34


(ariable expenses 8C,ACC,CCC

$ontribution margin 8,9CC,CCC

nnual breakeven T 89,CCC J 8 38C,ACC,CCC J 89,CCC,CCC4

T 89,CCC J 8 C.

T 89,CCC J C.8

T ,89C,CCC

&onthly breakeven T ,89C,CCC J 89

T @?C,CCC

he denominator is actually the contribution margin percentage of 8CS 38,9CC,CCC J

89,CCC,CCC4. /o, you can simplify the breakeven calculation to) breakeven T fixed expenses J

contribution margin S.

s long as our expenses stay within budget, our breakeven point will stay reliable. In the above

example, variable expenses must remain at CS of revenue and fixed expenses must stay at

89,CCC. If we change either of these variables, our breakeven point will change.

30


31/34


.0 8onclusion:

&athematics plays important role in business. Business mathematics is used in commercial

enterprises to record and manage business operations. &athematics typically used in commerce

includes elementary arithmetic, such as fractions, decimals, and percentages, elementary algebra,

statistics and probability. Business management is now more effective in some cases by the use

of more advanced mathematics such as calculus, matrix algebra and linear programming.

31


32/34


5eference:

- /chool of Business Informatics &athematics, Dniversity of &annheim. bout

Business &athematics. Z1nline[ vailable from https)JJwww.wim.uni-

mannheim.deJenJfuture-studentsJabout-business-mathematicsJ Zccessed) [

- &athematics 0ducation. 39CC4 Business &athematics. Z1nline[ vailable from

http)JJmathematics.svtuition.orgJ9CCJ Zccessed) [

- #ikipedia. 39C8>4 Business &athematics. Z1nline[ vailable from

http)JJen.wikipedia.orgJwikiJBusiness\mathematics Zccessed) [

- #ikipedia. 39C8>4 2ragoti http)JJen.wikipedia.orgJwikiJ2ragoti Zccessed) [

- #ikipedia. 39C8>4 ftab utomobiles Z1nline[ vailable from

http)JJen.wikipedia.orgJwikiJftab\utomobiles Zccessed) [

- atamotors 39C8>4 default homepage Z1nline[ vailable from

http)JJwww.tatamotors.com.bdJaboutJabout-tata-motors.aspx Zccessed) [

- ata motors 39C8>4 default homepage Z1nline[ vailable from

http)JJwww.tatamotors.com.bdJaboutJnn-group.aspx Zccessed) [

- Indian 0xpress 39C8=4 Business rticles Z1nline[ vailable from

http)JJindianexpress.comJarticleJbusinessJcompaniesJhero-motocorp-forms-+oint-venture-

in-bangladesh-to-set-up-manufacturing-plantJ Zccessed) [

- #ikipedia. 39C8>4 :unner utomobiles

http)JJen.wikipedia.orgJwikiJ:unner\utomobiles Zccessed) [

- !ivemint 39C8=4 atamotors Z1nline[ vailable from

http)JJwww.livemint.comJ$ompaniesJQ8wI>IBidlxc'n2&it:eIJata-&otors-to-set-up-

second-light-vehicles-unit-in-Banglad.html Zccessed) [

32

https://www.wim.uni-mannheim.de/en/future-students/about-business-mathematics/https://www.wim.uni-mannheim.de/en/future-students/about-business-mathematics/http://mathematics.svtuition.org/2009/http://en.wikipedia.org/wiki/Business_mathematicshttp://en.wikipedia.org/wiki/Pragotihttp://en.wikipedia.org/wiki/Aftab_Automobileshttp://www.tatamotors.com.bd/about/about-tata-motors.aspxhttp://www.tatamotors.com.bd/about/nn-group.aspxhttp://indianexpress.com/article/business/companies/hero-motocorp-forms-joint-venture-in-bangladesh-to-set-up-manufacturing-plant/http://indianexpress.com/article/business/companies/hero-motocorp-forms-joint-venture-in-bangladesh-to-set-up-manufacturing-plant/http://indianexpress.com/article/business/companies/hero-motocorp-forms-joint-venture-in-bangladesh-to-set-up-manufacturing-plant/http://en.wikipedia.org/wiki/Runner_Automobileshttp://www.livemint.com/Companies/Q1wI5IBidlxcDnPMit9ReI/Tata-Motors-to-set-up-second-light-vehicles-unit-in-Banglad.htmlhttp://www.livemint.com/Companies/Q1wI5IBidlxcDnPMit9ReI/Tata-Motors-to-set-up-second-light-vehicles-unit-in-Banglad.htmlhttp://mathematics.svtuition.org/2009/http://en.wikipedia.org/wiki/Business_mathematicshttp://en.wikipedia.org/wiki/Pragotihttp://en.wikipedia.org/wiki/Aftab_Automobileshttp://www.tatamotors.com.bd/about/about-tata-motors.aspxhttp://www.tatamotors.com.bd/about/nn-group.aspxhttp://indianexpress.com/article/business/companies/hero-motocorp-forms-joint-venture-in-bangladesh-to-set-up-manufacturing-plant/http://indianexpress.com/article/business/companies/hero-motocorp-forms-joint-venture-in-bangladesh-to-set-up-manufacturing-plant/http://en.wikipedia.org/wiki/Runner_Automobileshttp://www.livemint.com/Companies/Q1wI5IBidlxcDnPMit9ReI/Tata-Motors-to-set-up-second-light-vehicles-unit-in-Banglad.htmlhttp://www.livemint.com/Companies/Q1wI5IBidlxcDnPMit9ReI/Tata-Motors-to-set-up-second-light-vehicles-unit-in-Banglad.htmlhttps://www.wim.uni-mannheim.de/en/future-students/about-business-mathematics/https://www.wim.uni-mannheim.de/en/future-students/about-business-mathematics/


33/34


- #ordpress 39C8C4 :ussian orean $ar $ompany agE Z1nline[ vailable from

https)JJassiyasah.wordpress.comJ9C8CJC9J9AJrussian-korean-car-company-taga%-to-

invest-9-billion-in-bangladeshJ Zccessed) [

- #ikipedia. 39C8>4 agE Z1nline[ vailable from http)JJen.wikipedia.orgJwikiJagE Zccessed) [

- :unnerB' website 39C8>4 Z1nline[ vailable from http)JJwww.runnerbd.comJralJ

Zccessed) [

- :unnerB' website 39C8>4 Z1nline[ vailable from

http)JJwww.runnerbd.comJralJfactory.php Zccessed) [

- Blog 39C84.!ist of companies of Bangladesh. Z1nline[ vailable from

http)JJen.wikipedia.orgJwikiJ!ist\of\companies\of\Bangladesh Zccessed) [

- Gews hour 39C84 utomobiles Z1nline[ vailable from

http)JJwww.bgdportal.comJBusiness-$ommerceJutomobilesJH/-0nterprise-!td-

l8A.html Zccessed) [

- tlasB' website 39C8>4 Z1nline[ vailable from http)JJwww.atlas.gov.bd Zccessed) [

33

https://assiyasah.wordpress.com/2010/02/28/russian-korean-car-company-tagaz-to-invest-2-billion-in-bangladesh/https://assiyasah.wordpress.com/2010/02/28/russian-korean-car-company-tagaz-to-invest-2-billion-in-bangladesh/http://en.wikipedia.org/wiki/TagAZhttp://www.runnerbd.com/ral/http://www.runnerbd.com/ral/factory.phphttp://bangladesh-tradeeconomy.blogspot.com/2013/02/bangladesh-honda-private-ltd-bhpl-set.htmlhttp://bangladesh-tradeeconomy.blogspot.com/2013/02/bangladesh-honda-private-ltd-bhpl-set.htmlhttp://en.wikipedia.org/wiki/Automotive_industry_inBangladeshhttp://en.wikipedia.org/wiki/List_of_companies_of_Bangladeshhttp://www.newshour.com.bd/2014/08/04/automotive-industry-bangladeshhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.bgdportal.com/Business-Commerce/Automobiles/HS-Enterprise-Ltd-l1899.htmlhttp://www.bgdportal.com/Business-Commerce/Automobiles/HS-Enterprise-Ltd-l1899.htmlhttp://www.atlas.gov.bd/https://assiyasah.wordpress.com/2010/02/28/russian-korean-car-company-tagaz-to-invest-2-billion-in-bangladesh/https://assiyasah.wordpress.com/2010/02/28/russian-korean-car-company-tagaz-to-invest-2-billion-in-bangladesh/http://en.wikipedia.org/wiki/TagAZhttp://www.runnerbd.com/ral/http://www.runnerbd.com/ral/factory.phphttp://bangladesh-tradeeconomy.blogspot.com/2013/02/bangladesh-honda-private-ltd-bhpl-set.htmlhttp://bangladesh-tradeeconomy.blogspot.com/2013/02/bangladesh-honda-private-ltd-bhpl-set.htmlhttp://en.wikipedia.org/wiki/Automotive_industry_inBangladeshhttp://en.wikipedia.org/wiki/List_of_companies_of_Bangladeshhttp://www.newshour.com.bd/2014/08/04/automotive-industry-bangladeshhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.businessnews24bd.com/top-automobiles-companies-inbangladesh.htmlhttp://www.bgdportal.com/Business-Commerce/Automobiles/HS-Enterprise-Ltd-l1899.htmlhttp://www.bgdportal.com/Business-Commerce/Automobiles/HS-Enterprise-Ltd-l1899.htmlhttp://www.atlas.gov.bd/


34/34


A''endi< A: uarterly "inancial %tatements of Atlas Bangladesh imited

Documents

Term Paper (Business Mathematics)