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Showing posts with label Opportunity Cost Scenario. Show all posts
Showing posts with label Opportunity Cost Scenario. Show all posts

Saturday, February 5, 2011

Opportunity Cost Scenario - Clear Hear

Solution is available here for U$10

We are given a scenario and we must write a report with the following information:

o Identify alternative solutions to meet the end-state goals
o Analyze and evaluate the alternatives that you identified
o Perform risk analysis to identify potential risks and negative consequences of the alternative solutions
o Make a recommendation of the best alternative solution and explain how it best meets the desired end state



ClearHear is a manufacturer of cell phones, where Kendra Sherman works as a business development specialist. Kendra anxiously awaits her appointment with Lisa Norman, the production manager for ClearHear. Kendra has secured an order for 100,000 cell phones, virtually identical to ClearHear’s Alpha model which will support a promotion that a major chain, Big Box, is running with a telephone service provider. The delivery date is in 90 days. Lisa is interested, in part, because she has an excess capacity of 70,000 cell phone units over the next three months, and part of her bonus is based on running the factory at capacity. However, the larger part of her bonus is based on factory total profitability. Big Box, however, will not pay over $15 for each of the cell phones, which are based on the $20 per unit Alpha model, lessening Kendra’s enthusiasm.