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A customer has doubled its order for ski boots, which means that the manufacturer will not be able to meet the tight deadline. In addition, some of the pre-made clasps have been rejected after suffering transit damage, which means expediting the ski boot order is not an option. What action remains to the planner to address these issues?

User Brinxmat
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Final answer:

To address the ski boot order issue, the planner can apply the concept of reallocating resources to the part of the production process where the opportunity cost is lowest, similar to how a firm with multiple plants would shift production to the plant with the lowest opportunity cost for producing snowboards. This may involve shifting production or finding alternative suppliers for damaged parts.

Step-by-step explanation:

Given the challenges outlined in the question, the planner must implement problem-solving strategies to address the issue of not being able to meet the increased ski boot order due to tight deadlines and damaged clasps.

Looking at the provided information on production possibilities and opportunity costs, a similar situation arises where a firm must decide how to allocate resources effectively: shift production to the plant where the opportunity cost is lowest. In this scenario, Plant 3 is the optimal choice for producing snowboards because it has the least productivity in ski production, making it the plant with the lowest opportunity cost for producing snowboards versus skis.

This principle can be applied to the planner's dilemma by suggesting they reallocate resources to ensure the timely production of ski boots. This could involve shifting production from one of their plants that can handle increased orders with lower opportunity costs or finding alternative suppliers for the damaged clasps to prevent further delays. It's about finding the comparative advantage in the production process under the current constraints.

If reallocating resources within the company is not an option, the planner might consider outsourcing certain production steps, negotiating for extended deadlines, or communicating with the customer for a revised delivery schedule based on the current capabilities and limitations.

User Zorkzyd
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