This Case is about MANUFACTURING
PUBLICATION DATE: December 17, 2014 PRODUCT #: W14623-HCB-ENG
The plant manager of an aluminum alloy production plant is facing capacity shortages and must determine which of two new specialty orders to take on. Both orders cannot be filled simultaneously.
Pupils are asked to: (1) perform a sector size-up of the global metals sector and its own subset, the aluminum industry; (2) perform a business size-up of the business’s current operations; (3) ascertain the advantages and disadvantages of taking each customer order; (4) calculate the planned contribution margin rates for every merchandise order; (5) analyze, using differential evaluation, each customer order and (6) make a determination regarding which order to take.