BUSINESS INTELLIGENCE

Business Intelligence



Business Intelligence

Question 1 Xv => Maximum No. Of vacuum cleaners to be produced

Xw => Maximum No. Of washing machines to be produced

Linear Program Objective Function

Max Profit => $800 Xv + $1,200 Xw

Constraints

Labour Days

20 Xv + 50 Xw = 3,000

Material

$1,000 Xv + $ 1,500 Xw = $250,000

Variables and Constraints

Vacuum Cleaner (Xv)

Washing Machine (Xw)

Maximum Availability

Labour Days

20

50

3000

Material

$ 1,000

$ 1,500

$ 250,000

Profit

$ 800

$ 1,200

Original Problem

Maximize

X1

X2

 

 

Labour Days

20

50

<=

3000

Material

$ 1,000.00 $ 1,500.00 <=

$ 250,000.00

Condition 1

1

0

>=

50

Condition 2

0

1

>=

20

Dual Problem



Labour Days

Material

Condition 1

Condition 2

 

 

Minimize

3000

$ 250,000.00

-50

-20

 

 

X1

20

$ 1,000.00

-1

0

>=

$ 800.00

X2

50

$ 1,500.00

0

-1

>=

$ 1,200.00

 

X1

X2



RHS

Dual

Maximize

$ 800.00 $ 1,200.00

 

 

 

Labour Days

20

50

<=

3000

40

Material

$ 1,000.00 $ 1,500.00

<=

$ 250,000.00 $ -

Condition 1

1

0

>=

50

0

Condition 2

0

1

>=

20

-800

Solution->

100 units

20 units

 

104000

 

Productivity Level

Vacuum Cleaners

Washing machine

Maximum Profitability

At Max Washing Machines

50

40

$ 88,000

At Maximum Vacuum Cleaners (Optimal Level)

100

20

$ 104,000

At Minimum

50

20

$ 64,000

Thus:

At optimal Level i.e. Xv => 100 and Xw => 20

Linear Program Objective Function

Max Profit => $ 800 (100) + $1,200 (20)

Max Profit => $ 80,000 + $ 24,000

Max Profit => $ 104,000

Constraints

Labour Days

20 (100) + 50 (20) = 3,000

2,000 + 1,000 < 3,000

Material

$1,000 (100) + $ 1,500 (20) = $250,000

$ 100,000 + $ 30,000 < $ 25,000

On the basis of above solution, we can see that the optimal solution for producing Vacuum Cleaner and Washing Machine is 100 and 20 units respectively as the number of days and Material cost are restricted. So the optimal level of production is 100 Vacuum Cleaner and 20 Washing Machine with maximum profitability of $ 104,000.

Question 2

Characteristics of an Effective Performance Measurement System

There are six basic characteristics of an effective performance measurement system, even though we support the performance management plan to be tailored in accordance with the organizational culture and business strategy, but the six characteristics should be the cornerstone of all performance management system.

1.The continuing system of planning, directing, evaluating and rewarding performance management to establish and consolidate all the four pillars of the personnel management process is still planning, training, review and reward (Murby, L., & Gould, S., 2005, p.5-11). Weakened in any one of them, the entire system will be damaged.

2.Performance management is linked with specific business objectives; you need to push down from high and link the goals with business strategy in order to solve the plight of performance measurement and clearly communicate with employees, so that employees are able to understand their goals with necessary organizational goals.

3.Performance indicators are built on the basis of quantifiable targets and capacity. Until recently, most organizations can only rely on a separate market share, profit and operating income of this digital navigation (Salem, 2004, p.1-20).

4.Performance measurement is the obligation of managers at all levels, and managers at all levels must take the initiative to participate in the performance management. People generally believe that performance measurement is a matter of the human resources department, rather than a matter of department managers.

5.Performance measurement must be linked with other systems, must be clear with employees to communicate salary. When the company changed its pay system, it will convey two messages to employees: ...