Submitted By: Arun K B
Roll No. 1311218
Submitted By: Arun K B
Roll No. 1311218
MICSS Application – Simulation
What blocks organization from achieving more?
MICSS Smart Industries made heavy losses during the past year. They have maintained high reputation in the market, meaning all the deliveries were made as per the plan. Also they have excess capacity. The company has four major functions, Marketing, Production, Procurement and Finance. One of the reasons for poor perforce could be the limited information sharing between various functions. Marketing can increase the demand through price reduction. This can help the production team in increasing the machine utilization, which will have a direct impact on top line and bottom line. When marketing takes a decision it must be complemented by supporting decisions from production and procurement. The information should be shared across the functions to identify profitable and non-profitable contracts. Also the demand from clients are very low compared to the customers. Increasing the clients will stabilize the demand, which will help production and the procurement teams in better planning and resource utilization.

Can we sell significantly more?
Yes. To sell significantly more MICSS Smart Industries will have to maintain a high reputation in the market. This can be achieved by delivering the products on the promised date. A price reduction will result in increased demand. Smart industries should also accept the long term contracts, positive marginal profit in contract cost analysis report. Long term contracts though priced lower, since the demand is stable will increase the efficiency in planning.
What is the most profitable product mix, given the current capacity profile?
Smart industries sells 3 different products, A1 at a price 500, B1 at a price of 1000 and C1 at a price of 1500.

The most profitable