Case $3-2$

Capacity Concerns

Bentley Hamilton throws the business section of The New York Times onto the conference room table and watches as his associates jolt upright in their overstuffed chairs.

Mr$.$ Hamilton wants to make a point.

He throws the front page of the The Wall Street Journal on top of The New York Times and watches as his associates widen their eyes once heavy with boredom.

Mr$.$ Hamilton wants to make a big point.

He then throws the front page of the Financial Times on top of the newspaper pile and watches as his associates dab the fine beads of sweat off their brows.

Mr$.$ Hamilton wants his point indelibly etched into his associates' minds.

"I have just presented you with three leading financial newspaners carrving todav's ton husiness storv." Mr Hatilton

missed or late orders have increased steadily and signific over the past $12$ months. I think this trend explains why we been losing market share, causing our stock to drop to its est level in $52$ weeks. We have angered and lost the busine: retailers, our customers who depend upon on$-$time deliveric meet the demand of consumers."

"Why have we missed our delivery dates when our produc ity level should have allowed us to fill all orders?" Mr$.$ Hami asks. "I called several departments to ask this question."

$"$It turns out that we have been producing routers for hell of it$!"$ Mr$.$ Hamilton says in disbelief. "The marketing sales departments do not communicate with the manufact ing department, so manufacturing executives do not know w$]$ routers to produce to fill orders. The manufacturing executiv want to keen the nlant runnino on they nradine mutere recar