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Costs associated with the standard line are
rising. Dollars are being tied up in inventory, both of raw
materials and work in process. Expensive public warehouse
space has to be rented to accommodate the inventory
volume. Thomas also is concerned with increased lead
times for both custom and standard orders, which are
causing longer promised delivery times...
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Capacity is being
pushed, and no space is left in the plant for expansion.
Thomas decides that the time has come to take a careful
look at the overall impact that the new standard line is
having on his operations.
Questions
1. What types of decisions must Chad Thomas make daily
for his company's operations to run effectively? Over
the long run?
2...
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