StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Performance management and control - Essay Example

Cite this document
Summary
They are helpful in choosing the optimum course of action (Henderson 253). A practical scenario will be used to describe leaner programming in this paper. A producer…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Performance management and control
Read Text Preview

Extract of sample "Performance management and control"

Performance management and control Introduction Linear programming isa controlled maximization, whereby the objective and constraints functions are all linear. They are helpful in choosing the optimum course of action (Henderson 253). A practical scenario will be used to describe leaner programming in this paper. A producer makes two types of soaps; Yellow soaps and blue soaps. He can sell up to 280 of the Yellow soaps and up to 400 of the blue soaps per day. Each of the yellow soaps occupies s space of 0.

01 m3 in the depot while each of the small soaps occupies 0.008m3 of the depot space. The capacity of the depot is 4m3. Every day, 8 hours are spent producing the soaps, and the producer can produce Yellow soaps at the rate of 40 per hour, and the Blue soaps at the rate of 80 per hour. Each of the Yellow soaps attracts a profit of $5 and $3 for the Blue soap. We are going to use linear programming technique to find out the number of Yellow and Blue soaps that should be produced in order to maximise the profits.

SolutionThe first step is to formulate the problemWe shall take Y to represent the number of Yellow soaps and B to represent the number of the Blue soaps. Therefore, the objective function is:X = 5Y+3B ProfitThe following are the constraints:Y≤ 280; which is the maximum number of Yellow soaps Line 1B ≤ 400; which is the maximum number of Blue soaps Line 210Y + 8B ≤ 4000; which is the depot space Line 325Y + 12.5B ≤ 8000; which is the hours Line 4 Y, B ≥ 0 Non-negativity function Using the graphical method, the functions are plotted as follows:The area ABCDEF is the viable region.

The optimum viable solutions are at the corner points. The maximum problem is to be taken as the upper points.At corner A, Y and Line 2 = 0 intersectAt corner point A, Line 2 and Y=0 overlap; therefore, Y= 400 The following is the result of putting these figures in the objective function:X = 5Y + 3B=5*0 + 3*400=1200; Profit AAt corner B, Line 2 and Line 3 overlap; therefore: Substituting these figures in the objective function produces the following equation:X = 5Y + 3B=5*80 + 3*400=1600 Profit BAt corner C, Line 3 and Line 4 overlapThe following functions can be used to represent these lines:Line 3 10Y + 8B = 4000 (1)Line 4 25Y + 12.

5B = 8000 (2)Multiplying function (1) by 25 and function (2) by 10 produces the following(10Y + 8B = 4000) *25(25Y + 12.5B = 8000) * 10250Y + 200 B= 100,000 (3) 250Y + 125B = 80,000 (4)Deducting function (4) from (3) gives:75Y =20,000⇒B =266.7⇒Y = 186.7 Combining these values in the objective equation leads to the following:X= 5Y + 3B=5 *186.7 + 3 * 266.7=1733 Profit CAt corner D, Line 1 and Line 4 overlap, Y= 280 The following equation represents the profit at this point:X = 5Y + 3B=5*280 + 3*80=1640 Profit DAt E, Line 1 and B = 0 overlapB = 0 ⇒ Y = 280z = 5Y + 3B=5*280 + 3*0=1400 Profit EDecisionOf all these profits, it is C where profit is maximized; hence 186 is the number of Yellow soaps produced and 266 is the number of Blue soap produced and 266.

7 is the maximum profit. Three ways in which the overall contribution to sales ratio could be improved1. The selling price can be increased; however, care should be taken so this strategy does not lead reduction in sales volume. If the selling price is increased without affecting the sales volume significantly, then the contribution sales ratio is increased directly.2. Reduction of variable costs per unit can lead to a better contribution sales ratio. This can be achieved by acquiring inputs at cheaper prices; for example by buying in large qualities in order to enjoy quantity discounts.3. An entity can concentrate on production of the product mix that promises the highest contribution in order to augment the contribution sales ratio.

Works CitedCui, Mark et al “Linear Programming Detection and Decoding for MIMO System”, IEEE Commun. Lett 9.5 (2006): 423-425. Print.Henderson, Charles. An Introduction to Linear Programming. New York: John Willy, 1993. Print.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Performance management and control Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Performance management and control Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1610965-performance-management-and-control
(Performance Management and Control Essay Example | Topics and Well Written Essays - 500 Words)
Performance Management and Control Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1610965-performance-management-and-control.
“Performance Management and Control Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1610965-performance-management-and-control.
  • Cited: 0 times

CHECK THESE SAMPLES OF Performance management and control

The use of budgets in the improvement of management performance and control within global businesses

hellip; The use of budgets in the improvement of management performance and control within global businesses Introduction Budgeting is a management tool for performance measurements and its variants have appeared from time to time depending upon the market situation, prevailing competition etc.... The activity based budgeting is directly linked to cost management as a part of planning and control.... This way a company is able control waste and efficiency which is the ultimate goal of budgeting....
5 Pages (1250 words) Essay

Employee Control and Employee Performance Measure

Among these are the organizational control mechanisms that indirectly contribute to individual employee performance.... Three of the most important techniques he proposed to for managers include, market control, bureaucratic control and culture or clan control (Ouchi 1979 p.... S-S Technologies faces a problem of employee control.... While the firm is at a fast development stage, the management has little control lover its employees....
8 Pages (2000 words) Case Study

Employee Learning, Not Management Control, Is The True Purpose Of Performance Appraisals

“The satisfaction of the need for esteem produces feelings of self-confidence, prestige, power, and control.... The essay "Employee Learning, Not Management control, Is The True Purpose Of Performance Appraisals" discusses how employee performance appraisal is designed to illustrate an employee's weaknesses versus their individual strengths and should be used as a tool to improve employee competence.... As a control tool, the end result is employee dissatisfaction and causes problems with emotional needs....
8 Pages (2000 words) Essay

Budgetary Control as the Part of Overall Organisation Control

The assumptions depict that a business plan of any organisation may contain financial budget, which is prepared to monitor and control the complex financial issues of the plan.... Budgetary control has created a greater impact on the performance management, thereby making it a vital part of every small or big corporation.... performance management is defined as a set of metrics employed to evaluate both effectiveness and efficiency of any action....
7 Pages (1750 words) Essay

Budgetary Control and Performance Management

Budgetary control is a financial representation of the organization's business plans and objectives, and can be used as a monitor and control mechanism for intricate issues of the plan.... These business managers use the budgets to financially explain the objectives of the business over a period, generally given as… Budgetary control is therefore an important element in organizational control especially concerning performance management.... The purpose of this paper is to discuss the growing use of budgetary control in performance management by defining and explaining its benefits and limits in regard to the capital market, and how those limits can be overcome....
7 Pages (1750 words) Essay

Advantages of Budgetary Control for Corporation

These budgets have also become a tool for evaluating the… As a communication of the management's expectations from the managers and lower level employees within the prescribed limits, budget was also said to be a reason Budgetary control is one of the two kinds of controls in an organization, the other being financial control.... According to Ryan (2006), Budgeting control involves the planning, control, co-ordination and motivation of departmental estimations in monetary terms....
7 Pages (1750 words) Essay

Strategy Maps as Management Tools and Systems

Herein comes in the immense utility and importance of strategy Strategy maps could effectively be used as a management tool and system to monitor and control the performance of business or organizational units (Meyer 202, p.... Therefore, more than ever, in the current times, the crux of business management is to evolve and convey… business strategies in a way that dispels the immanent ambiguities and makes the incumbent business strategy clear to all the salient stakeholders in an organization or a business unit (Dinsmore & Rocha 2012, p....
4 Pages (1000 words) Essay

What Are Management Control Systems

Management control systems refer to the ways a company collects information to manage and control the activities regarding accomplishment of organizational goals and objectives in an effective manner.... A management control system helps management and employees perform their assigned activities in a proper manner using the information stored in it.... Companies use management control systems to support organizational objectives, control activities, and drive organizational performance....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us