Question

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the product Camp entirely off the market this year. Assume Chester scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Chester or other companies. Without Chester's product Camp how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

Select: 1

7,172

8,472

9,449

8,149

3,859

4,771

9,542

Production Information 2nd Auto Shift & mation Capacity Unit Primary Units Inven Material Labor Contr. Over Next Next Plant N

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Answer #1

Five companies are in CORE segment

the companies are Art, Came , Cell , Dimo ,Dome

Calculation of total production of company

Company Primary Segment Capacity Next round
Art Core 1150
Camp Core 1300
Cell Core 1500
Dimo Core 1097
Dome Core 1024
Total Capacity 6071

total production of company without Camp's Production = 6071-1300=4771

these can work in two sessions

production = 4771*2 = 9542

the answer is 9542

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