A company is a leading manufacturer of robotic arms. All robot arms are manufactured in their plant in Ontario, and shipped to distribution

centers or major customers. The company recently acquired a direct competitor in $BC,$ and is considering moving its operations to the $BC$ plant.

Considerations in this decision are the transportation, labor, and production costs at the two plants. Marketing is also predicting a decline in the

demand. The company developed three scenarios:

Demand falls slightly, with no noticeable effect on production.

Demand and production decline $20\%.$

Demand and production decline $40\%.$

The following table shows the total costs undereach decision and scenario:

a$)$ What decisions should the company make using each strategy?

Aggressive strategy

Conservative

strategyA company is a leading manufacturer of robotic arms. All robot arms are manufactured in their plant in Ontario, and shipped to distribution

centers or major customers. The company recently acquired a direct competitor in $BC,$ and is considering moving its operations to the $BC$ plant.

Considerations in this decision are the transportation, labor, and production costs at the two plants. Marketing is also predicting a decline in the

demand. The company developed three scenarios:

Demand falls slightly, with no noticeable effect on production.

Demand and production decline $20\%.$

Demand and production decline $40\%.$

The following table shows the total costs undereach decision and scenario:

a$)$ What decisions should the company make using each strategy?

Aggressive strategy

Conservative

strategy