CASE $-1$

Reynolds Manufacturing Company

by

Khursheed Omer

Reynolds Manufacturing Company manufactures a product that is processed in three sequential departments. Lately, the competition in the industry has become very intense as many foreign manufacturers have introduced their product in the international market at lower prices.

Management at Reynolds is considering process improvement. They have been told by a sales representative of a manufacturing equipment company that introduction of state$-$of$-$art equipment and several other measures in processing department #$1$ can significantly reduce the per unit cost of processing. This would allow com