Strategic Sustainable accounting \ Assessment

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Strategic Sustainable accounting
Student name
Institution

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Executive summary
The ability of the managers to make optimal decisions is the difference between excellence and
failure in organizations. One area that needs to be given attention is the production process. For
optimum profitability a firm has to produce enough units to supply the market demand at the
lowest cost possible. This can only be achieved by accounting for the use of all the resources in
the production. In most cases this can be a complex decision affected by several variables. Liner
programming is one of the techniques that can be applied by managers to analyse the situation
and ease the burden of deriving the optimal production points. This study did evaluate the
production decisions of Timberland and Sketchers. In both the firms, it was realized that linear
models are an effective part of decision making. For Timberland organization, the use of linear
programming was able to optimise output when machine hours were limited as well as assist the
managers evaluate the financial viability of introducing new machinery. In the case of Sketchers,
liner programming models were vital in estimating the optimal production point both when
maximizing profits as well as when maximizing the contribution margin. With the introduction
of tools like solver, liner programming can now be applied with ease by managers at different
levels to analyse optimal decisions.

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Table of Contents
Introduction......................................................................................................................................4
Question 2- Product mix and tactical decisions...............................................................................4
1. Impact of machine constraint................................................................................................4
2. Limitation of machine hours to 12000..................................................................................5
3. Evaluating viability of renting a new machinery..................................................................5
Question 3- Linear programming....................................................................................................7
1. Optimal production using solver..........................................................................................7
2. Ways to improve the contribution margin............................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10