Solution of case study of Mintendo Game Girl

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Institute of Management Sciences

A Case Study of Mintendo Game Girl

Supply Chain Management

Submitted toMr. Saad Jaffery

Submitted byHassan Tariq (142759)

CHAPTER NINECase Questions and answers of Mintendo Game Girl The results for this case are obtained using the accompanying spreadsheet Mintendo Case Study. Basic ModelThe decision variables are contained in Cells B4:I10 in worksheet pricing. The constraints are as follows:Workforce balance (Equation 8.2): Cells M5:M10Capacity (Equation 8.3):Cells N5:N10Inventory balance (Equation 8.4):Cells O5:O10Overtime limit (similar to Equation 8.5):Cells P5:P10The detailed costs are calculated in Cells B15:I20 and the total cost is shown in Cell C22. The net profit is shown in Cell C25. Given that all demand is to be met, minimizing cost is equivalent to maximizing profit.We first consider the case where a $5 discount in any month increases demand within the month by 50% and moves 30 percent of each of the following two months of demand forward.Base Case (No promotion)Set cell C27 = 0. Run Solver (within options you may have to deselect Assume Linear Model). The solution is

Sandras Plan (Promote in September)Set Cell C27 = 1 (promotion on) and Cell C28 = 3 (September) and Cell E29 = 5 (discount). Run Solver to obtain the following solution:

Bills Plan (Promote in November)Set Cell C27 = 1 (promotion on) and Cell C28 = 5 (November) and Cell E29 = 5 (discount). Run Solver to obtain the following solution:

With a $5 discount, Bills plan of promoting in November is the most profitable.$10 discountWith a $10 discount, the base case of offering no discount stays the same as shown above and produces a profit of $36,115,280.To check Sandras plan, Set Cell C27 = 1 (promotion on) and Cell C28 = 3 (September) and Cell E29 = 10 (discount). Run Solver to obtain the following solution:

To check Bills plan, Set Cell C27 = 1 (promotion on) and Cell C28 = 5 (November) and Cell E29 = 10 (discount). Run Solver to obtain the following solution:

With a $10 discount it is best not to run any promotion.Outsourcing Cost Rises to $22Change Cell B24 in Sheet1 to 22.To evaluate the base case without discounting, set Cell C27 = 0 to obtain the following solution:

Sandras plan with a $5 discount does not use subcontracting and thus continues to provide a profit of $36,987,365.To evaluate Bills plan, set Cell C27 = 1, C28 = 5 and E29 = 5 to obtain the following solution:

Promoting in November (Bills plan) continues to be the most profitable even if subcontracting costs rise to $22 / unit.