| Giant Motor Company |
| Assumptions |
| The Lyra and/or Libra plants can be retooled |
| The Hydra plant must stay open and cannot be retooled |
| There is no incentive to produce more than demand |
| Plant characteristics |
| | Lyra | Libra | Hydra | New Lyra | New Libra |
| Capacity (in millions) | 1 | 0.8 | 0.9 | 1.6 | 1.8 |
| Fixed cost (in $billions) | 2 | 2 | 2.6 | 3.4 | 3.7 |
| Profit margin (in $1000s) per car (large negative numbers mean the plant can't make that car) |
| | Lyra | Libra | Hydra | New Lyra | New Libra |
| Lyra | 2 | -100 | -100 | 2.5 | 2.3 |
| Libra | -100 | 3 | -100 | 3 | 3.5 |
| Hydra | -100 | -100 | 5 | -100 | 4.8 |
| Demand (in millions) |
| Lyra | 1.4 |
| Libra | 1.1 |
| Hydra | 0.8 |
| Demand diversion matrix (from along side, to along top) |
| | Lyra | Libra | Hydra |
| Lyra | NA | 0.3 | 0.05 |
| Libra | 0 | NA | 0.1 |
| Hydra | 0 | 0 | NA |
chalmerswong
ABACase6.1Template1.xlsx
