Management Report Based on Quantitative Method of Analysis
For the long time prediction, all the factors like machines or other available resources of the division are assuming to be constant, no break down, and no lack of resources.
When produce 320 metres of yarn, we still have 760 hours vats available, but combed and carded machines are used up to its limit, therefore it is possible to make more vats and sell it to other division to do the following steps of making yarn.
From all the given data, the contract could be fulfil with 320 metres produced by the division and 180 metres bought in. The minimum cost incurs is £8580 per week. Total yarn to be sold from the division is 500 metres per week, which has reached both qualitative and quantitative norms.
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