BUAD Bitter Pill D - BUAD 110 Bitter Pill D 1. The New...

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BUAD 110 Bitter Pill D 1. The New Jersey, Alabama, Washington, and Michigan plants produce 60%, 40%, 20%, and 100% Vioxx pills respectively. 2. If Merck were to discontinue production of Vioxx it would probably be wise to shut down both the Michigan and New Jersey plants, as it would cost too much time and money to convert both majority Vioxx producing plants from Vioxx to other products. 3. Merck could efficiently realign production by moving the 40% of other drugs produced in the New Jersey plant to fill the 40% void in production at the Alabama plant caused by the cessation of Vioxx. This would enable the Alabama plant to continue efficiently operating at 100% capacity, and the New Jersey plant could be closed. Assuming demand for other drugs remains high, production of those drugs could be increased by 20% at the Washington plant, keeping the Washington facility operating at 100% capacity as well. The Michigan plant (100% Vioxx) should be closed, as there is no need for another plant producing
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This note was uploaded on 04/07/2008 for the course BUAD 110 taught by Professor Kydd during the Fall '07 term at University of Delaware.

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BUAD Bitter Pill D - BUAD 110 Bitter Pill D 1. The New...

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