ABC Ltd Case Study

Running Head: ABC LTD CASE STUDY
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BUSINESS ANALYSIS CASE STUDY (SL- CONTROL COMPANY)
Name of Student:
Name of Institution:
Date:

ABC LTD CASE STUDY
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Purpose of the Report
The company called ABC Ltd requires viable production recommendations based on
expert analysis. The recommendations that are required are based on the required number of
balls they should manufacture in order to get optimal profits. Therefore, the analysis involved is
meant to ensure that ABC will obtain maximum net profits from the manufacture and sell of
footballs and basketballs.
The decision to obtain the optimal number of balls that will ensure that the company
gains maximum net profit will be arrived at based on the constraints that the company has. The
constraints include: The capacity of the production, the material costs, the labor costs and the
time available for manufacturing. Constrains are allocated based on the decision variables. The
decision variables are the number of footballs and the number of basketballs that the company
manufactures. Therefore, the report seeks to help ABC Ltd. Improve their resource allocation
processes and decisions.
Description of the Problem
The problem that is being solved in this report is a case study of a production company.
The company is in a dilemma of the optimal units to produce in order get a maximum net profit.
The sporting company has a set of constraints and decision variables that should be used in
making the decision. The description of the scenario is provided in the paragraph that follows.
Methodology
Method that was used to solve the problem is the linear programming method. Linear
programming is a mathematical technique of maximizing variables based on certain constrains.
The maximization is meant to aid decision-making process (Mahmoudi, et al., 2019). The

ABC LTD CASE STUDY
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constraints or constraint factors are the restrictions or the limitations that the decisions must
adhere to. In the case study of ABC, the constraints are limitations factors that the manufacture
of basketballs and footballs must adhere (Tripathy, et al., 2019). The constrain factors include:
Total number of machine hours for basket balls and the total number of machine hours for
footballs. Values of the constraints are shown in the table below.
The tables below also shows the model formulation process. The maximum and
minimum values of the constraints are shown in table 1. Table 2 represents the changing cells.
The variables in the changing cells represents the variables that can be manipulated under
different manufacturing conditions. The factors in the changing cells include: The units
produces, the time of production (in hours), the revenue, and the cost of labor, the cost of
material, the gross profit, and taxation and net profit. The values in the changing cells are
determined by the values of the decision variables (Mahmoudi, et al., 2019).
Constraints
Factor
Total machine hours (hrs.) Min 39000
Max 40000
Basketballs Min 30000
Max 60000
Footballs Min 20000
Max 40000
Table1: Constraints
Manufacturing table
Basketball Football Total
Changing cells
Units produced 56000 40000 96000
Calculations and Income statement
Time (hrs.) 28000 12000 40000
Revenue($) $784,000 $440,000 $1,224,000
Cost of labor ($) $168,000 $72,000 $240,000