Din Brada AB manufactures stick-glued cutting boards that are sold in the retail trade. Four different types of wood (oak, ash, linden and chestnut) are used for the boards, which are made in a few different sizes and thicknesses. The rod width also varies slightly between the boards. A total of 34 different cutting boards are manufactured and sold.

The company wants to increase its profitability and is now considering completely switching to manufacturing customer order-specific cutting boards, as it is believed that this will be attractive on the market. The idea is that the customer should be able to choose the type of wood and surface treatment, and within certain limits: width, height, thickness, rod width and rod length. Ordering must be done via a web interface, and the cutting boards will be delivered directly to the customer's home. It is expected that sales volume (number of cutting boards) will increase by about 20%, and that the sales price will be able to increase by an average of 30%.

a) How do you think the company's costs will be affected by this change? For each cost item you include, you must account for, and justify, the following:

i. Whether the cost will increase or decrease

ii. Whether the change will be big or small

b) How do you think the delivery service to the customer will be affected by this change? For each aspect of delivery service you address, you must account for, and justify, the following:

i. If the service will improve or deteriorate

ii. Whether the change will be big or small