Research Paper on:
A Case Study in Production Decision Making

Unformatted Sample Text from the Research Paper:
the output maximised with the most profitable goods then the company will make a profit of ?6,035,000 profit. The alterative is that which is favoured by management. This involves  keeping the supply to the demand levels and therefore increases the revenue, but as a result of the need to outsource a major production line, as this is the  only one suited to outsourcing, the profit margin would be lower at ?5,320,000. The are advantages to looking at the most profitable, including the loss of control, unforeseen costs, but  with the loss of market share and possible alienation of some customers. There are also some strategic advantages to retaining market share with the low level of profit. This paper  outlines these options and makes a recommendation to accept option 1. 1. Introduction ABS has a situation where there is increased demand for the products it produced. The demand  now exceeds the capacity within the facilities. There is no scenario where the company can use only internal resources and meet this demand. The purpose of this report is to  consider the two option that hare possible in order to determine which of these options will be the most advantageous for the company. The first option is to adjust the  product mix so that the products made maximise the potential profit. The second option is to postured one of the production limes, increasing the overall capacity. The assumptions made in  this report are that the figures produced are correct and there are no unexpected coats, that there are no other solutions available. 2. The Options These options will be  examined independently in order to determined that advantages and disadvantages of each option. The financial aspects are important, but will not work in isolation, therefore other factors present in the