Operations Decisions

Operations Decisions

1. Briefly describe the details of the fictitious business that you created for this assignment.

The fictitious business that has been created is Light up the Sky, Inc. which is a luminescent kites manufactures. The company is working since the last 10 years and they have established themselves as a high quality manufacturer of kites. The company contains only a small fraction of the overall kite industry but still they are able to control a profit margin of 20%. On the other hand, because of recession in the economy, the company's profit margin has been reduced to a significant extent in fact it dropped down to even reaching the breakeven condition because of which the management is now planning to shutdown the operations of production.

2. Assess the current environmental scan factors. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations.

In order decide for Light up the Sky, Inc. to continue operations, management of the company has to consider several factors through which they can take optimal decisions. Initially, market analysis is the most important factor to determine the demand for kites in the market and then analyzing their personal demand depending on their quality. For example, luminescent kites may have been a fad whose time has come and gone. This will lead to an important result about to further produce or invest in the market i.e. whether there still a place for their product in the market. Now, after the demand analysis, the next step for the management is to found out cost cutting ways through which they can meet the demand significantly without sacrificing the quality through minimum costs. The factors that are responsible or questionable for the management are:

What would be the optimized output for the ...