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In earAlthough marketing is confident of the rough shape of demand, there is not enough marketing data to predict the actual peak demand at this
In earAlthough marketing is confident of the rough shape of demand, there is not enough marketing data to predict the actual peak demand at this point. It will depend on how fast demand starts growing after day 60. Management's main concern is managing the capacity of the lab in response to the complex demand pattern predicted. Delays resulting from insufficient capacity would undermine LL's promised lead times and ultimately force LL to turn away orders. *ly January, Littlefield Labs (LL) opened its first and only highly automated lab to test blood samples. LL receives the samples from local hospitals and clinics and processes the samples using disposable kits. After 360 days of operation the lab will cease operations, shut down, and dispose of any remaining kit inventories. Neither capacity nor inventory has a salvage value after the lab shuts down. Marketing has sketched the expected demand trend, shown in the figure below
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