Title: Operations Management Questions and Problem 4 from Chapter 3

Contents

1. Define product design and explain its relationship to business strategy

2. What are the differences between product and service design?

4. Explain the meaning of design for manufacture and give some examples.

Problem 4

Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs to be $500,000. Variable costs are estimated at $200 per unit produced and sold.

(a) If the company plans to offer the new printers at a price of $350, how many printers does it have to sell to break even?

 (b) Describe the types of operations considerations that the company needs to consider before making the final decision.

The questions and answers are from the text below:

Reid, D., & Sanders, R. (2009). Operations management. Hoboken, NJ: John Wiley & Sons, Inc.

Word count: 336