Mertontruck Company Essay

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Quantitative Business Analysis for Capacity Assessment INBA 6145 GROUP ASSIGNMENT COHORT – 55 TEAM – INNOVATION INVASION Merton Truck Company NAME | ID # | Kelly Jackson-Baynes | 814005354 | Crystal Manickchand | 814005353 | Ramona Balgobin | 814005540 | Sara Samuel | 806005295 | TABLE OF CONTENTS 1 CASE SUMMARY1 2 KEY ISSUES/CHALLENGES2 3 METHDOLOGY…..3-8 3.1 Steps Taken3-4 3.2 Case Model Calculations5 3.3 Lag Effects6 3.4 Models Done7-8 4 fINDINGS 9-11 4.1Model Choice9 4.2 Shipment projections based on model chosen10 4.3 Forecast Results11 5INTEPRETATION…..12-13 6CONCLUSION…..14 7APPENDIX…..15-26 1. CASE SUMMARY Merton’s Truck company president was dissatisfied with the company’s financial performance during a six month period January –June 1988. He suggested that something be done to improve the financial position of the company. Suggestions included changing the product mix or just stop making a Truck Model 101 altogether as it was not making a profit. Additionally, he also suggested that they outsource engines from an outside supplier to relieve the capacity problem. The objective is to determine what Merton should decide and upon what should the decision be based on in addition to the constraints that may arise. This case analyses the best product mix for Merton Truck Company in order to improve the company’s financial position by using linear programming models. 2. Key Issues/ Challenges Identified The company manufactured two specialized models of trucks Model 101 and Model 102. The manufacturing process was grouped into four departments: * engine assembly * metal stamping * Model 101 assembly * Model 102 Assembly The capacity of each department was expressed in machine hours required for each truck model in each department. Machine hours

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