Business Analysis and Decision Making

This analysis focuses on the use of different LP techniques to make decision making simpler in convoluted administrative circumstances. The articles that are going to be discussed here are from different segments of the corporate world but have in some or the other way used the LP techniques to cater to their individual problems. The companies about which we talk about have different problems those are as follows

1. (Company Name – LG): How to reduce the End of Life Cycle inventory of LED packages side by side maximizing the end products that meet the customer requirements and reach them successfully.
2. (Company Name – Chevron Refineries): How to maximize the enterprise value in Chevron’s crude-to-customer supply chain, this problem is further subjected to different sub problems like which crude oils to buy, which products to manufacture, how to operate the refinery to make best use of company’s assets.

The most inferable and common problem with both the case study is the intricacies related to the evaluation around the exploitation of the resources in multi-dimensional environments.

This paper lays bare that the companies in both the cases were benefitted and improved by the   innovative implementation of the quantitative Linear Programming methods, though the thing to be kept in mind is that a profitable utilization of the LP techniques is always based upon finding the correct decision variable and constraints.

1. Optimizing the Production Planning – LG

1. Problem Description:

Nowadays, Light-emitting-diode backlight units(LED BLUs) are the main resource in the production of liquid crystal display(LCD) electronic products which is due to its obvious advantage: environmentally friendly and  economically efficient.

The production process includes 4 main steps: wafer fabrication, packaging, array bar assembly and backlight assembly. In this article, we would talk about the optimization of the packaging and array bar assembly processes. In the first step, in order to meet the customer’s specific demands, array bar assembly process assembles the LED packages with different characteristics. This may disturb the usage rate equilibrium, i.e. shortage and overstock would result in inflated costs for the company.

In order to minimize the loss and inventory costs, by-products were sold to toy suppliers at low prices. The most critical part of this whole problem was the time taken to produce a low score package. The models of the LCD screens keep changing every 3-4months, so providing the customers with the desired packages and side by side optimizing the Production cost and the inventory is a mammoth task for the planners.

1. Multi Rank Mixing approach by LG:

To solve the ever rising problem of increasing inventory and production cost LG had to come up with some different approaches so that they don’t incur too much loss.

...