Simulation Report #1
Varshith94
Decision2.pdf
3/31/22, 7:35 PM StratSimManagement @ Interpretive Simulations
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Decisions / Decision Summary
Interior Styling Safety Quality Total Maximum 10 11 9 11 Firm Maximum 6 7 5 7 Cost to Increase by 1 (mill.) $205 $298 $393 $386 $1,282 Est. cost savings of increase (mill.)
$7 $1 $5 $1 $15
Increase Attribute: Yes No Yes Yes Curr. Expenditure (mill.) $205 $0 $393 $386 $984
Technology
Dev. Center Project Class Size HP Interior Styling Safety Quality
Base Cost*
Current Expense
(mill.) Maximum: 6 7 5 7
1 Cafav Cost Reduction
Launching Now Family 49 165 4 2 2 2
$15,595 $15,304
$182
2 Camini Cost Reduction
Launching Now Minivan 82 200 2 1 2 1
$16,923 $16,596
$182
3 Beginning construction $624
Total Expense: $988
* Base cost only; use the Pro-Forma for a projection of the unit cost when you launch the upgrade.
Product Development / Projects
Concept Name / Class Size HP Interior Styling Safety Quality
*Est. Base Cost
Devel. Cost
(mill.) Devel.
Time
CA-0001 AEV 50 150 6 5 5 7 $25,861 $1,352 3 Years
* Estimated Base Cost is for 100,000 units.
Product Development / Concepts
Corporate Advertising Millions North $42 South $70 East $25 West $25 Social Media $90 Direct Marketing $39 Total $291
Ad Themes
Marketing / Corporate
Interior Styling
Safety Quality
Performance
Showroom
StratSimManagement Past Start 1
Stock Price: $45.83Introduction Company Market Competition Tools Decisions
Firm C
3/31/22, 7:35 PM StratSimManagement @ Interpretive Simulations
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Segment Targets
Value Seekers (1) Families (2)
Singles (3) ✓ High Income (4)
✓ Enterprisers (5)
Vehicle Class MSRP Dealer
Discount Advertising
(millions) Advertising
Theme Promotion
(millions)
Sales Forecast
(000's)
Remove From
Market Cafav F $31,361 12.0% $60 Quality $40 139 No Camini M $24,144 13.0% $40 Performance $30 214 No Climax L $45,997 16.0% $80 Performance $20 129 No Totals $180 $90 482
Marketing / Products
Total North South East West Full Coverage 800 200 250 150 200 Established 350 80 95 85 90 Sched. Change 0 0 0 0 0 Coverage 43.8% 40.0% 38.0% 56.7% 45.0%
Dealer Inc./Dec. (0% limit: ±0) 22 8 6 6 2 Coverage with Current Decisions 46.5% 44.0% 40.4% 60.7% 46.0%
Training and Support (mill.) $90 $21 $24 $22 $23 Per Dealer $257,143
Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $291 thousand.
Distribution
Prev. Sales
(000's)
Current Inventory
(000's)
Scheduled Production
(000's) Flex
Retooling Costs
Mill. $ Cafav 139 12 119 Yes $22 Camini 214 18 217 Yes $99 Climax 129 11 124 Yes $21 Total 482 40 460 $142 Capacity (000's) 500 Scheduled Production 460 Est. Plant Cost for Add'l 100k Mill. $ $760 Capacity Change (000's) 10 Est. Plant Cost Mill. $ $77
Manufacturing
Est. Plant Sale Price Mill. $ n/a Book Value Mill. $ n/a Loss on Sale of Plant Mill. $ n/a
Finance / Cash
Showroom
StratSimManagement Past Start 1
Stock Price: $45.83Introduction Company Market Competition Tools Decisions
Firm C
3/31/22, 7:35 PM StratSimManagement @ Interpretive Simulations
https://app5.interpretive.com/ss7s22/index.php 3/3
Current Cash Balance $3,015M Purchase 1 Year CD @ 3.0% $1M
Current Stock Price $45.83 Current Shares Outstanding 255M Current Market Value $11,687M Issue Stock (Negative value is repurchasing.) $184M Dividends Paid $500M
Finance / Stock
Short-Term Debt Loan Balance @ 8.0% $4,903M Loan Repayment $4M Long-Term Debt Current Bond Rating BB Issue Bonds @ 6.0% $238M Total Debt $5,137M
Finance / Debt
There is no special decision this period.
Special Decisions
Showroom
StratSimManagement Past Start 1
Stock Price: $45.83Introduction Company Market Competition Tools Decisions
Firm C
