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    I2B Assignment - Sankriya

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    Free Ride Cycles (FRC) is a bicycle manufacturer that recently entered the Indian market. They produce two types of bicycles at their Gurgaon factory: "Special" bicycles for tier 1 cities and "Standard" bicycles for tier 2 and 3 cities. The document provides production costs, selling prices, labor costs, packaging costs, current production capacity of 390 bicycles per day with 120 workers, and time required to produce each type of bicycle. It asks to use linear programming to determine the optimized production quantities, quantities and profit with expanded capacity, and number of days to reach break-even on a $10 million capacity expansion investment.

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    I2B Assignment - Sankriya

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    Free Ride Cycles (FRC) is a bicycle manufacturer that recently entered the Indian market. They produce two types of bicycles at their Gurgaon factory: "Special" bicycles for tier 1 cities and "Standard" bicycles for tier 2 and 3 cities. The document provides production costs, selling prices, labor costs, packaging costs, current production capacity of 390 bicycles per day with 120 workers, and time required to produce each type of bicycle. It asks to use linear programming to determine the optimized production quantities, quantities and profit with expanded capacity, and number of days to reach break-even on a $10 million capacity expansion investment.

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    I2B Assignment_Sankriya (1)

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    Free Ride Cycles (FRC) is a bicycle manufacturer that recently entered the Indian market. They produce two types of bicycles at their Gurgaon factory: "Special" bicycles for tier 1 cities and "Standard" bicycles for tier 2 and 3 cities. The document provides production costs, selling prices, labor costs, packaging costs, current production capacity of 390 bicycles per day with 120 workers, and time required to produce each type of bicycle. It asks to use linear programming to determine the optimized production quantities, quantities and profit with expanded capacity, and number of days to reach break-even on a $10 million capacity expansion investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    2 views1 page

    I2B Assignment - Sankriya

    Uploaded by

    mark
    Free Ride Cycles (FRC) is a bicycle manufacturer that recently entered the Indian market. They produce two types of bicycles at their Gurgaon factory: "Special" bicycles for tier 1 cities and "Standard" bicycles for tier 2 and 3 cities. The document provides production costs, selling prices, labor costs, packaging costs, current production capacity of 390 bicycles per day with 120 workers, and time required to produce each type of bicycle. It asks to use linear programming to determine the optimized production quantities, quantities and profit with expanded capacity, and number of days to reach break-even on a $10 million capacity expansion investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Assignment - 1

    Free Ride Cycles (FRC) is an established bicycle manufacturer in the international market with
    products offering like Road Bike, Touring Bike, Mountain Bike, Fixed Gear, etc., catering to
    the needs of different types of customers. FRC entered the Indian market recently & wants to
    compete with existing cycle manufacturers by selling its products across the country. FRC has
    its manufacturing unit at Gurgaon, with a production capacity of 390 bicycles per day. These
    bicycles are distributed majorly to the Tier – 1 city for “Special” bicycles & Tier – 2, 3 cities for
    ‘Standard’ type of bicycles. The prices offered to the distributor by FRC for Special & Standard
    bicycle are $220 & $175 respectively. The cost involved is the direct labour costs will be 45%
    of the selling price for the Special bicycle & 40% of the Selling Price for the Standard bike.
    Production costs per unit are $44 for a Special bicycle and $30 for a Standard bicycle.
    Packaging cost is $20 for each Special & Standard bicycle. FRC employs 120 workers to
    produce these two types (each work for 8 Hr/day). Each Standard bike requires 2.5 Hrs &
    each Special cycle requires 2.4 Hrs to complete.

    Using linear programming technique:

    a) Determine the optimized production quantity of Special & Standard bicycles for
    sustaining in the market.
    b) FRC wanted to increase sales by expanding the production capacity. They have
    installed new machine which raised their capacity by 30 units & additionally hired ten
    workers with same working hours as before. Determine the no of units produced &
    profit earned per month?
    c) FRC is investing $10 M for the capacity expansion. Determine the no of days it takes
    to obtain the break-even point for this investment.

    Assignment – 2

    Study the assigned company and explain the different supply chain strategies that this
    company has adopted. You can think of inventory planning, logistics, Warehouse
    Management systems, etc., but you should not limit your research to these aspects. You can
    look for these on the company’s website, newsletters, news articles, etc. Any information used
    for the assignment should be a credible source and mentioned in the solution.

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