Concept explainers
Creative Designs makes intricate jewelry out of precious metal. The company is introducing a new line and needs to select a manufacturing process. Three options are available. The first involves using a mold to mass produce the design for pendants, earrings, and bracelets. The second option laser cuts the design from a block of metal using a pattern directed by the software. The third option builds the design out of metal powder (gold, silver, and bronze) via a 3D printer. The company is uncertain about demand for the new design.
- a. If Creative Designs expects to sell 200 pieces of the new design, which process should it use?
- b. If Creative Designs expects to sell 1000 pieces of the new design, which process should it use?
- c. Create a decision rule that specifies which process to select for different levels of demand.
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