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Problem Identification:

Unmet market demand due to inadequate supply.

Objective:

To search for two best factory locations to meet market demand at a lowest
possible cost.

Strengths:

1. Ability to design and develop unique features and devices


2. Financial stability

Weaknesses:

1. Low production volume


2. Insufficient supply

Opportunities:

1. Supplier selling fiberglass at a $2.00 discount per gallon


2. Workforce willing to work for $1.00 less per hour
3. High customer demand

Threats:

1. Presence of competitors
2. Decline in customer demand
Alternative Courses of Action:

In order to meet the existing market demand for Shower-Rifics, Custom Vans, Inc.
should pursue the plan of establishing two new production facilities. He has three
choices on where he should locate the two new facilities. It can be at Rockford and
Madison, at Rockford and Detroit, or at Detroit and Madison.

Justification/Recommendation:

Discount

Madison= $450
Total= $10550

Discount

Madison=$450
Detroit= $600
Total= $10200

Discount

Detroit=$600
Total=$11400

Based on the given table, the two new facilities should be located at Detroit and
Madison in order to meet the existing market demand at the lowest possible cost.
College of Business and Accountancy
NOTRE DAME OF MIDSAYAP COLLEGE
Midsayap, Cotabato

CUSTOM VANS, INC.


Case Study on Operations Management

Submitted by:
Irish Pearl L. Acuesta BSA-3
Luke Janrey S. Martizano BSA-3