LittlefieldLabE10IEOR - Stanford University Graduate School...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Stanford University Graduate School of Business rev. January 2008 This note was written by Samuel C. Wood and Sunil Kumar, assistant professors at the Stanford University Graduate School of Business Capacity Management at Littlefield Technologies Background In early January, Littlefield Technologies (LT) opened its first and only factory to produce its newly developed Digital Satellite System (DSS) receivers. LT mainly sells to retailers and small manufacturers using the DSS’s in more complex products. LT charges a pre- mium and competes by promising to ship a receiver within 24 hours of receiving the order, or the customer will receive a rebate based on the delay. The process times for each step are: * The process times for Step 3 are random, but their long-run average is 4.5 hours. The product lifetime of many high-tech electronic products is short, and the DSS receiver is no exception. After 268 days of operation, the plant will cease producing the DSS receiver, retool the factory, and sell any remaining inventories. In the initial months,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

LittlefieldLabE10IEOR - Stanford University Graduate School...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online