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The DoorCo Corporation is a leading manufacturer of garage doors. All doors are manufactured in their plant in Carmel, Indiana, and shipped to distribution
The DoorCo Corporation is a leading manufacturer of garage doors. All doors are manufactured in their plant in Carmel, Indiana, and shipped to distribution centers or major customers. DoorCo recently acquired another manufacturer of garage doors, Wisconsin Door, and is considering moving its wood door operations to the Wisconsin plant. Key considerations in this decision are the transportation, labor, and production costs at the two plants. Complicating matters is the fact that marketing is predicting a decline in the demand for wood doors. The company developed three scenarios and determined the total costs under each decision and scenario, which are given in the accompanying tables. Complete parts a through c. Click here to view the scenarios. Click here to view the total costs. a. What decision should DoorCo make using the aggressive strategy? Select the correct choice below and fill in the answer box to complete your choice. A. DoorCo should stay in Carmel because it has the lowest minimum cost of $ Total costs B. DoorCo should stay in Carmel because it has the lowest maximum cost of $ C. DoorCo should move to Wisconsin because it has the lowest maximum cost of $ D. DoorCo should move to Wisconsin because it has the lowest minimum cost of $ b. What decision should DoorCo make using the conservative strategy? Select the correct choice below and fill in the answer box to complete your choice. A. DoorCo should stay in Carmel because it has the lowest maximum cost of $ B. DoorCo should move to Wisconsin because it has the lowest minimum cost of $ C. DoorCo should stay in Carmel because it has the lowest minimum cost of $ D. DoorCo should move to Wisconsin because it has the lowest maximum cost of $ c. What decision should DoorCo make using the opportunity-loss strategy? Select the correct choice below and fill in the answer box to complete your choice. A. DoorCo should move to Wisconsin because it has the lowest maximum opportunity loss of $ B. DoorCo should stay in Carmel because it has the lowest minimum opportunity loss of $ C. DoorCo should move to Wisconsin because it has the lowest minimum opportunity loss of $ D. DoorCo should stay in Carmel because it has the lowest maximum opportunity loss of $ Stay in Carmel Move to Wisconsin Scenarios Slight Decline $1,035,000 $1,130,000 20% Decline $830,000 40% Decline $970,000 $825,000 $760,000 Print Done 1. Demand falls slightly, with no noticeable effect on production. 2. Demand and production decline 20%. 3. Demand and production decline 40%. Print Done - I -
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