Thankyou so so much for making this video for us. really it's very helpful to understand payout table regret table as well as simple and fast method to calculate profit for all 6 numbers❤️❤️❤️❤️ Appreciate your help❤
Please may you help me with a video on Operational and Planning variances, i just need this before the exam on Wednesday. Your videos are so helpful, thank you
Great question! It depends on the context of the scenario--for the cement company, they commit to the production schedule before they sell--variable cost is linked to units produced, not sold. For the van, the variable cost is linked to how many crates they actually drive around-crate deliveries sold.
Maximax is the best option in the worst-case scenario, which is low demand. The van capacity is our decision. So we go through the 2 options: big van/small van and then check the profits in the different demand states, the uncertainty.
More clarity on the variable cost value, i thought it will be calculated on the van capacity and also for capacity being greater than demand, i will be 90% on the variable cost since in the question states that if the capacity of the van is greater than the demand for crates in a period then the variable cost will be lower by 10%. thank you
Hi there. The van has a max capacity. So if demand is 120 KG, but my van only holds 100KG, then my variable cost will be for the 100 my van can hold, not for the total demand. If the van is partially empty because I sell all my units on the delivery route, then the VC drops 10%...that's the idea in this question.
those first ones are 10% reduction of the variable cost--it's just adding a +10% to the negative variable costs 480, 480, 760. the -100 is the 'lost customer goodwill' in the question: we didn't service all the customers so some will choose a different company. Make sense? Good luck Wednesday!
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Thankyou so so much for making this video for us. really it's very helpful to understand payout table regret table as well as simple and fast method to calculate profit for all 6 numbers❤️❤️❤️❤️ Appreciate your help❤
It's my pleasure :) Feel free to tell your friends!
Please may you help me with a video on Operational and Planning variances, i just need this before the exam on Wednesday. Your videos are so helpful, thank you
Just uploaded :)
@@SteveWillisACCA most of us will be highly indebted to you.
That's Helpful!
Glad it was helpful!
Really helpful
Glad you think so!
for VC. we are using min formula but in previous Q we went with prod units. should we use min formula in that Q too?
Great question! It depends on the context of the scenario--for the cement company, they commit to the production schedule before they sell--variable cost is linked to units produced, not sold. For the van, the variable cost is linked to how many crates they actually drive around-crate deliveries sold.
@@SteveWillisACCA thanks, makes sense now :)
Why do we choose the maximin and maximax based on demand? Why not based on Van capacity?
Maximax is the best option in the worst-case scenario, which is low demand. The van capacity is our decision. So we go through the 2 options: big van/small van and then check the profits in the different demand states, the uncertainty.
Hi Sir.Can you please tell me the why Variable cost in shifters haulage&cement co calculated in a different way?
The variable cost is based on what is produced, not sold. So if we produce 100 but sell 50, 60, or 70, the variable cost is based on 100.
@@SteveWillisACCA THANKYOU
@@Ananthu-rb5ig NP
More clarity on the variable cost value, i thought it will be calculated on the van capacity and also for capacity being greater than demand, i will be 90% on the variable cost since in the question states that if the capacity
of the van is greater than the demand for crates in a period then the variable cost will be lower by 10%. thank you
Hi there. The van has a max capacity. So if demand is 120 KG, but my van only holds 100KG, then my variable cost will be for the 100 my van can hold, not for the total demand. If the van is partially empty because I sell all my units on the delivery route, then the VC drops 10%...that's the idea in this question.
Please how did you get the 48, 48 and 76? Also, why did you use -100 on the other column (i.e the column for when demand is higher than capacity)?
those first ones are 10% reduction of the variable cost--it's just adding a +10% to the negative variable costs 480, 480, 760. the -100 is the 'lost customer goodwill' in the question: we didn't service all the customers so some will choose a different company. Make sense? Good luck Wednesday!
Hi Steve.Can you please give me an idea about the question "TICKET AGENT"(QT NO:296 OF KAPLAN)
I will have to check that this week.
@@SteveWillisACCA OK