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Your have run out of processing capacity and cannot fill all orders... the operating divisions are screaming that they want their orders processed. 1. Which
Your have run out of processing capacity and cannot fill all orders... the operating divisions are screaming that they want their orders processed. 1. Which orders should be processed and why? 2. What options need to be explored? 3. How can an order type change its priority in terms of getting their orders filled? Really complicated Complicated Simple Orders Processing time per order (hours) Total processing time 500 0.50 250 600 0.40 240 1,200 0.30 360 Processing time capacity Total processing cost 750 $10,000 Selling price per order Variable cost per order $10.00 ($6.00) $12.00 ($5.00) $8.00 ($4.00) Your have run out of processing capacity and cannot fill all orders... the operating divisions are screaming that they want their orders processed. 1. Which orders should be processed and why? 2. What options need to be explored? 3. How can an order type change its priority in terms of getting their orders filled? Really complicated Complicated Simple Orders Processing time per order (hours) Total processing time 500 0.50 250 600 0.40 240 1,200 0.30 360 Processing time capacity Total processing cost 750 $10,000 Selling price per order Variable cost per order $10.00 ($6.00) $12.00 ($5.00) $8.00 ($4.00)
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