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| Journal of Business Case Studies |
| Year: 2008 |
Month: November | Volume: 4 |
Number: 11 |
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Amaya Company: Financial Considerations For Product-Mix LP Models |
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Dennis F. Togo, University of New Mexico, USA |
| Abstract |
The Amaya Company case illustrates how financial considerations can be added to product-mix linear programming (LP) models to create a more realistic and robust decision aid. Most managerial/cost accounting or operations management courses introduce product-mix LP models but without financial considerations such as cash flows and its interest expense, debt covenants, or the time value of money. Hence, the initial product-mix solution may not be acceptable when managers scrutinize its impact for related financial requirements. Students completing the Amaya Company case add financial considerations to a product-mix LP problem and examine the resulting change from the misleading initial solution. |
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| (Clute Institute for Academic Research article #: 1307) |
