Preview

ITVEM Optimization Model

Powerful Essays
Open Document
Open Document
1383 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ITVEM Optimization Model
Technical Aspects of ITVEM

Systems Optimization

Associated with the ITVEM optimization model, it will be the optimization of the cost minimization, although the optimization can also be in terms of maximizing the performance. To do so, Figure V.5 can assist to be a chart reference, whereas it should also develop several assumptions regarding the optimization process, for example, the Cobb-Douglas production function (Lin and Kao, 2014) replaces each the desired output (the starred y*it, i = 1, 2, 3, 4 and t = 1, ..., 11) of subsystems. In this optimization testing, the data that will be used is Telkom’s data representing the others. Moreover, the Cobb-Douglass function is as follows: (V.5)
Whereas y*t = the desired output, Kt = the regular
…show more content…
As for the revenue in terms of estimation interests, each subsystem receives an allocation of revenue as mentioned above that will be equivalent to the Telkom total revenue as in the second column of Table V.17. The capital estimation aims to seek the minimum cost for the realized revenue as seen in the second column of Table V.17, in this case in Telkom Indonesia. While the realized capital is as seen in the third column Table V.17. If the realized capital is compared with the estimated capital, it will be the difference as shown in the last column of Table V.10, which is 22.01 % in average as capital saving. In other words, that for such revenues in the second column of Table V.17, it is still possible to achieve only by the amount of capital as in the eighth column of Table V.17 for each year. Therefore, there will be significant capital savings, but by considering and controlling risk factors and anticipating business …show more content…
If the closed-loop poles lie to the left-half s plane, the system is stable. However, if the closed-loop poles lie on the jω (imaginary axis) of the s plane, the system is marginally stable. Thus, the poles of both transfer functions are s2 + C = 0 or s2 = -C. In other words, s= ±j√C so that the poles lie on the imaginary axis of the s plane, therefore the system is marginally stable.
Furthermore, the external system stability point of view means that the system will be stable depending upon those who operate it such as in the capital allocation within an investment decision making. This system stability relates to a concept of BIBO (bounded input and bounded output), which states that the system is stable if its bounded input produces the bounded output and not stable if its bounded input causes the unbounded output (Nori, 2015). This circumstance can be evidenced from the data estimation using the PAV as it has been presented in the discussion above. Comprehended that the estimation results never produce infinity outputs (yt), obviously with measured inputs (capital) as well. In other words, the ITVEM exhibits a stability in the operation of the

You May Also Find These Documents Helpful

  • Good Essays

    In this case, the corporate cost of capital needs to be analyzed and hence, to estimate that, a company’s long-term source of funds (common stock, long-term debts and preferred stock) should be used. Since the corporate cost of capital is used to make decisions today, which will affect the future cash flows, the only acceptable costs are today’s marginal costs that are used. These marginal values are the estimates of the cost of capital that will be raised in future which will provide an accurate estimation of raising the capital in future.…

    • 1073 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Revenue. Revenue includes net sales, cost of goods sold, and gross profit. Gross profit continues to grow at 30.4% with .23%/ $4,900 from year 12 to 13, and .93%/ $19,600 from year 13 to 14. Net sales also showed the same growth at 100%. The company expects continued growth over the next three years and according to the trend analysis, has the ability to do so. This demonstrates the company’s ability to keep overhead under control and maintain constant margin in relation to sales, consistent year after year. The expenses are variable in relation to the sales. Higher gross sales leads to higher operating income available to service debt in the form of interest payments.…

    • 1596 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Based on the assumption and calculation above, total incremental income can be derived as follows. The proposal would generate an extra net profit before tax for SMC of $11,098, $88,850 and $88,850 in year 1996, 1997 and 1998 respectively. On the base of year 1995, the sharp increase in sales by 178% would bring in a 21% increase in net profit before tax.…

    • 4058 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    CFP PROJECT FINAL 1 5

    • 5763 Words
    • 38 Pages

    The analysis of the financial projection in this report is based on the assumptions and the information which you (client) provided. These assumptions and information can be change with the passage of time. The information which I presented on the basis of current tax and legislation is subject to change. It is very important, that you review your financial plan regularly to reach your financial goals.…

    • 5763 Words
    • 38 Pages
    Good Essays
  • Good Essays

    Contribution margin per unit = $2,300 $115,000 (total contribution margin) / 50 (rings) 2. Break-even = 20 rings $46,000 (total fixed costs) / $2,300 (contribution margin p/unit) 3. Desired profit ($92,000) = 60 rings ($46,000 (total fixed costs) + $92,000 (desired profit)) / $2,300 (contribution margin p/unit) 4. KOHA PRODUCTS LT Projected Income Statement…

    • 1326 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    The Business Plan for the period 2015-16 to 2020-21 outlines the strategy that the company will pursue during the year for sustainable growth that is consistent with its overall philosophy of conducting business with a high sense of social commitment and adherence to ethics.…

    • 1090 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Case 9

    • 645 Words
    • 3 Pages

    2) According to the exhibit 1, the operating cash inflow is operating profit before tax plus depreciation, which was 100.0+40.9=140.9 (in thousands of dollars). Simultaneously, the cash outflow equal to the tax payment (39.2 thousands). Then, the working capital equals to current assets minors current liability. As a result, the working capital in 2004 and 2005 were respectively 689.1 (732.3-43.2) and 786.3(833.6-47.3). Hence, the change in working capital was 97.2 (786.3-689.1). Furthermore, the…

    • 645 Words
    • 3 Pages
    Good Essays
  • Good Essays

    As we can see from the figures and the information given in the present case, the company is very profitable due to the ambition and well management done by its owner Mr. Jones. In this regard, we can see in “Table 2 in the spreadsheet”, that the company is taking advantage of the 2% discount offered by suppliers saving around $75,000.00 per year.…

    • 1070 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Lessons of Valujet 592

    • 1044 Words
    • 5 Pages

    Engineering Handbook, version 3.2 (Report No. INCOSE-TP-2003-002-03.2). Retrieved from INCOSE website: SE Handbook 2010-0201 v3.2 Updated Final 8.5x11.pdf…

    • 1044 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    The concept and affect on Marginal cost and revenue due to certain business operations were included in the paper.…

    • 561 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    However, due to the uncertainty of access charge change and competition, the operating margin would increase or decrease by as much as 7% from the prediction, although the management was committed to the predicted revenue levels. Therefore, the external financing needs would vary correspondingly. See detailed calculation in Exhibit 2, and 3.…

    • 301 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    balance score card

    • 552 Words
    • 2 Pages

    Financial. The quarterly profits exceeded the expectation of the firm by $1,000 ($6,000 versus $5,000) in contrast the return on capital was lower by $2,500 ($4,000 versus $1,500). The return on capital measure the efficiency and profitability of the organization which to need rapid intervention. The managers should reassess the operations and logistics to improve the efficiency of the production line. Also, review the fixed expenses for possible saving on energy and utilities. Because the internal process score improved the fixed and variable costs…

    • 552 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Worldwide Paper

    • 1320 Words
    • 6 Pages

    In this case, 2008 is the first operating year, for 2008, the company expected to have revenues of approximately $4 million, the sales are expected to reach $10 million in 2009 and continue at the $10 million level through 2013. The cost of goods sold would be 75% of revenues and SG&A (Selling, General and Administrative Expenses) would be 5% of revenues, the working capital in this case would equal 10% of incremental sales for the year, the incremental…

    • 1320 Words
    • 6 Pages
    Good Essays
  • Good Essays

    As we know from the case, the Superior is implementing the standard cost system which was introduced in early 2005---“Next year’s standard costs were last year’s actual per unit costs adjusted for anticipated cost changes”. By looking at Exhibit 2 and Exhibit 4, we could compare the level of all the costs under the items. The applicable way is to focus on “Variances” which indicate the degrees of changes of all the direct and indirect costs between 2004 & 2005. In addition, the mark of “+” indicates favorable and positive improvement and the mark of “-“indicates unfavorable and negative declines. Therefore, we could obviously observe the major changes in the company are mainly Rent (+259), Indirect Labor (+213) and Depreciation (+642), others factors remain comparatively small different from last years. We could thus conclude that these 3 factors are the main reasons that enabled Superior to improve profitability.…

    • 473 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Goodweek Tires Case Study

    • 2387 Words
    • 10 Pages

    Capital budgeting is the process of identification of opportunities, estimation of cash flow to be generated by the project, evaluating and selecting from among the alternative courses of actions and implementing the investment project with proper follow-up. Hence, Managers must carefully select those projects which promise the greatest future return. How well managers make these capital budgeting decisions is a critical factor in the long run profitability of the company. The case is about the investment decision for producing SuperTread, a new tire of Goodweek Tires, Inc. The report focuses on the Net Present Value (NPV), Payback period, Discounted payback period, Average Accounting Return (AAR), Internal Rate of Return (IRR), Profitability Index (PI) of this project.…

    • 2387 Words
    • 10 Pages
    Powerful Essays