In the company, it is very difficult to actually do quotations for our customers properly because we do not have perfect information regarding the factors that affect the cost and profit. So I created a program that supposedly helps me analyze the effects of each factors to the cost and profit of the job. However, I can only change 1 factor at a time as it is almost impossible to actually chart the interactions between all of them as there are over 10 factors that needs to be considered. But my problem is, a one by one analysis does not give very relevant information at times and the problem of giving a very good quotation to our customers still persist. So I am looking for ways to actually go into a deeper dive into the interactions between the factors, but my mathematical skills are not so good yet so I need some leads. The program sample is as shown below:
The equations and factors that lead to the cost and profit are shown below:
$(1)$ \begin{equation} \frac{\text{Raw Material Cost}}{sq.in.}. = \frac{\text{Raw Material Cost}}{Length * Width} \end{equation}
$(2)$ \begin{equation} \frac{sq.in.}{Unit} = (\frac{Length}{Unit} + \frac{\text{Length Allowance}}{Unit})*(\frac{Width}{Unit} + \frac{\text{Width Allowance}}{Unit}) \end{equation}
$(1)$ and $(2)$ to make $(3)$ \begin{equation} \text{Raw Material Cost}/Unit = \frac{\frac{\text{Raw Material Cost}}{sq.in.}}{\frac{sq.in.}{Unit}} \end{equation}
$(4)$ \begin{equation} \frac{Units}{Day} = \text{Production Rate} * \frac{Units}{Impression} \end{equation}
$(4)$ to make $(5)$ \begin{equation} \frac{\text{Labor Cost}}{Unit}=\frac{\frac{\text{Labor Cost}}{Day}}{\frac{Units}{Day}} \end{equation}
$\text{Revenue Formula:}$ \begin{equation} Revenue=\text{Total Number of Units Produced}*[(\frac{\text{Raw Material Cost}}{Unit}*\text{Raw Material Mark-Up Constant}+ \frac{\text{Labor Cost}}{Unit}*\text{Labor Mark-Up Constant})*\text{Overall Mark-Up Constant}] \end{equation}
$\text{Cost Formula:}$ \begin{equation} \text{Total Cost}=\text{Total Number of Units Produced} * (\frac{\text{Raw Material Cost}}{Unit}+\frac{\text{Labor Cost}}{Unit})+\text{Total Set-Up Cost}+\text{Total Delivery Cost} \end{equation}
The dependent variables to be studied is Cost and Profit:
$\text{Profit:}$ \begin{equation} Profit=Revenue - Cost \end{equation}
Variables that will have their values tested over a range of values (or the independent variables):
- Total Number of Units Produced
- Raw Material Cost
- Labor Cost per Day
- Production Rate
- Units per Impression
- Raw Material Mark-Up Constant
- Labor Mark-Up Constant
- Overall Mark-Up Constant
- Total Set-Up Cost
- Total Delivery Cost
- Length per Unit
- Width per Unit
- Length Allowance per Unit
- Width Allowance per Unit