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The forecasts indicate that we will need 2,800 MyPhones for the first launching, 1,100 for the week after that, 1,050 for the third week,
The forecasts indicate that we will need 2,800 MyPhones for the first launching, 1,100 for the week after that, 1,050 for the third week, 1,150 for the fourth week, and 950 for the fifth week. Unfortunately, we can only produce up to 1,100 My- Phones per week, but we can start our production earlier and keep some inventory for the weeks with higher demand. There is another option: we have another production line for the MyPads, and we could borrow some hours from there to reach our produc- tion targets. Nevertheless, there is an extra cost for using that line. Speaking about money, the MyPhone production on the main production line costs $400 per unit, and it costs $100 to keep a unit in inventory during one week. Also, the extra production line could produce up to 500 units, but the production cost is 25% higher than in the main production line due to overtime. The marketing department indicates that 60% of the customers that don't get a Myphone during the week they tried to purchase it are willing to wait for the next week, and the remaining 40% will just give up and either not purchase a MyPhone, or go to our competitor Cyborg, which would represent not -selling our $799 MyPhones to some potential customers... Please do the following: a) Since this is a conversation, you may need to contribute to it a little bit. Please indicate any assumptions (to fill holes in the story, such as data, objectives, etc.) that you would consider in the system to address this problem (2 or 3 assumptions will suffice).
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