Key Performance Indicators (KPIs)

Base Cost

The Base Cost is the total investment required for the manufacturing facility and marketing. Because of capital contraints, the goal is to keep fixed costs as low as possible.

Variable Cost

The Variable Cost is the cost of producing one lawn mower. It includes the raw material, labor, and outsourced parts. The goal is to keep this as low as possible. Variable costs must be lower than the price of the lawn mower.

Projected Demand/yr

The Projected Demand/yr is the number of mowers that we can expect to sell in a given year. The demand is determined by the marketing investment and pricing decision.

Production Capacity/yr

The Production Capacity/yr is the number of mowers Tanro can manufacture in a given year. The capacity is determined by the outsourcing and automation decisions. The capacity should exceed the demand, otherwise Revenues will be restricted and the Break-Even period will be extended.

Break-Even Volume

The Break-Even Volume is the total number of sales required to hit the break-even point.

Break-Even Revenue

The Break-Even Revenue is the amount of revenue at the break-even point.

Break-Even Date

The Break-Even Date is the number of years it will take to reach the Break-Even Point. The goal for the Simulation is less than two years.