Profit optimizer

A system for providing profit optimization of products and services comprising:

• a memory storage device for storing data wherein data may be stored and retrieved;
• an input device for receiving entry of data wherein data may be input into the system;
• a computer processor operationally connected with the input device and the memory storage device for determining capacity value analysis;
• the input device receives data including:
• an economical run sequence to minimize setup time;
• a forecast in units per year;
• a number of planned production per year;
• a throughput rate at a constraint;
• a setup time in hours per standard run quantity;
• an hourly cost of capacity budget;
• a standard material cost per unit;
• expenses paid to a supplier;
• and a selling price of a product per unit;
• and
• the computer processor determines:
• a standard run quantity by dividing the forecast in units per year by the number of planned production per year;
• a production hours by dividing the standard run quantity by the throughput rate at the constraint;
• the total capacity hours per standard run quantity by adding the setup time in hours per standard run quantity with the production hours;
• a total variable cost per standard run quantity by multiplying the total capacity hours per standard run quantity times the hourly cost of capacity budget;
• a standard variable cost per unit by dividing the total variable cost per standard run quantity by the standard run quantity;
• a standard direct cost per unit by adding the standard variable cost per unit and the standard material cost per unit;
• a net selling price per unit by subtracting the expenses paid to the supplier from the selling price of the product per unit;
• the contribution margin per unit by subtracting the standard direct cost per unit from the net selling price per unit;
• a contribution margin per year by multiplying the contribution margin per unit times the forecast in units per year;
• and the capacity value analysis wherein the contribution margin per year is divided by the product of the total capacity hours per standard run quantity times the number of planned production runs per year;
• and
• an output device operationally connected with the computer processor, the output device for providing the capacity value analysis to aid in determining the maximum profitability of the company's products and services that are maximized by concentration on the company's products and services that are the most profitable based on the capacity value analysis.

A computer-readable medium having computer-executable instructions which when executed by a computer system cause the computer processor to perform operations that provide for profit optimization comprising:

• receiving and storing data comprising:
• an economical run sequence to minimize setup time;
• a forecast in units per year;
• a number of planned production per year;
• a throughput rate at a constraint;
• a setup time in hours per standard run quantity;
• an hourly cost of capacity budget;
• a standard material cost per unit;
• expenses paid to a supplier;
• and a selling price of a product per unit;
• and
• determine a capacity value analysis by determining:
• a standard run quantity by dividing the forecast in units per year by the number of planned production per year;
• a production hours by dividing the standard run quantity by the throughput rate at the constraint;
• the total capacity hours per standard run quantity by adding the setup time in hours per standard run quantity with the production hours;
• a total variable cost per standard run quantity by multiplying the total capacity hours per standard run quantity times the hourly cost of capacity budget;
• a standard variable cost per unit by dividing the total variable cost per standard run quantity by the standard run quantity;
• a standard direct cost per unit by adding the standard variable cost per unit and the standard material cost per unit;
• a net selling price per unit by subtracting the expenses paid to the supplier from the selling price of the product per unit;
• the contribution margin per unit by subtracting the standard direct cost per unit from the net selling price per unit;
• a contribution margin per year by multiplying the contribution margin per unit times the forecast in units per year;
• and the capacity value analysis wherein the contribution margin per year is divided by the product of the total capacity hours per standard run quantity times the number of planned production runs per year wherein the capacity value analysis aids in determining the maximum profitability of a company's products and services by concentration on the company's products and services that are the most profitable.