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Solution of case study of Mintendo Game Girl

Institute of Management Sciences

A Case Study of Mintendo

Game Girl

Supply Chain Management

Submitted to
Mr. Saad Jaffery

Submitted by
Hassan Tariq (142759)

Solution of case study of Mintendo Game Girl

CHAPTER NINE
Case Questions and answers of Mintendo Game Girl

The results for this case are obtained using the accompanying spreadsheet Mintendo
Case Study.
Basic Model
The decision variables are contained in Cells B4:I10 in worksheet pricing. The
constraints are as follows:
Workforce balance (Equation 8.2):
Cells
Capacity (Equation 8.3):
Cells
Inventory balance (Equation 8.4):
Cells
Overtime limit (similar to Equation 8.5):

M5:M10
N5:N10
O5:O10
Cells P5:P10

The 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:

Solution of case study of Mintendo Game Girl

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 discount
With 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:

Solution of case study of Mintendo Game Girl

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 $22
Change Cell B24 in Sheet1 to 22.
To evaluate the base case without discounting, set Cell C27 = 0 to obtain the
following solution:

Solution of case study of Mintendo Game Girl

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.