Marginal profit maximization application for a manufacturing company

An application to help businesses maximize their margins, optimize business processes and improve decision-making. Its main purpose is to provide companies with tools to effectively manage all aspects of their operations and improve margins

Goal

Tasks

Provide a tool to optimize the resource utilization

Improve production forecasting and planning

Implement price management mechanisms with algorithms to calculate maximum margins

Provide an option to work with multiple currencies

1

Introduce calculation of the need for raw materials and supplies to ensure the production plan

Develop a solution in a short time (<6 months)

4

2

Add multicurrency calculation of direct costs per unit

Automate the formation of a production plan with the maximum marginal profit, given the specified constraints

5

Deploy the solution in the cloud

3

Forms for entering restrictions

Solutions

By production capacity in terms of modeling versions by production units and products

Market volumes for products with currencies and simulation versions

By materials availability is generated in the context of the modeling versions

Introduced forms for entering planning figures and maintaining exchange rates

The ability to select the base currency of procurement for each type of raw material is enabled

Monthly plan for material procurement is formed by currency and modeling versions

For each simulation model a forecast exchange rate is set, and currency equivalents are automatically calculated for them

Added ability to maintain a material expenditure plan

Formed automatically in the simulation currency based on the consumption rates, the production plan and the cost of materials

Material consumption is calculated for the entire production volume

The cost of materials is calculated on the planned volume of production

Calculation of material cost plan

Set up calculable indicators and calculation of marginal profits

Automatic calculation of marginal profit

The production plan is formed during the calculation of the marginal profit, ensuring its maximum value, taking into account the given constraints:
- Capacity constraints
- Limitations of the market capacity
- Limitations of material availability

Automatic calculation of material costs per unit

Results:

The production plan is formed taking into account production capacity, market capacity and availability of materials

Maximum marginal profit is calculated under conditions of multi-currency sales and purchase of raw materials and supplies

The application calculates the needs for raw materials and supplies to support the production plan