In the recorded session, I begin by talking about the case situation $($in lieu of a case statement$),$

which is a production planning problem for a manufacturing start$-$up$.$ I present the original

optimal solution $($with a contribution of $$2,206\mathrm{.}353$K$),$ which turns out to be a really bad solution

$($even though it is optimal$).$ After that, I present two alternative solutions, each of which favors

one of the two products your company makes. While the LP formulation was set up to maximize

contribution, you also had to consider capacity utilization $($both actual and the need for a pattern

of increasing utilization$),$ costs and borrowing $($how much of the line$-$of$-$credit $$ LOC $$ is

available as a safety net$),$ and market penetration $($total sales and an increasing volume of sales

from month to month$).$ I am not claiming these are the two best solutions, but they are two

different solutions and you have to pick one of them.

You must listen to that recording and then decide for yourself which one of the solutions you

would recommend, based on the criteria I present. Both solutions are better on some criteria, and

worse on others. You must make tradeoffs to pick your solution. Once you have done that, you

must write up your recommendation in a one$-$page summary.

One note: many students think producing the product DL is the more important idea because it is

used to treat AIDS patients. That is one of the solutions that is presented, but you cannot choose

that solution based on the ethical argument. Producing DL has serious financial risks for the

company, and if you select that solution $($which also has some significant rewards$),$ you must do

so based on a financial argument. I am not saying the ethical argument is not important, but it is

equally important that your company stay solvent. If your company goes bankrupt, the product

will be off the market for years as the legal issues are straightened out, and that won$$t help

anyone.

The margins of the paper can be no less than one inch all the way around. The typeface may be

no less than $10$ point, and you must use a normal typeface $($Times New Roman, or something

like that$).$ The paper should be single$-$spaced. Grammar and spelling will be graded. The

outline for what you must write follows:

Begin by telling me which of the two solutions $($make no DL or make all DL in January$)$ you

choose, saying simply $$I recommend we $\_\_\_\_.$ You should not include the quotation marks and

fill in the $\_\_\_\_\_\_\_$ with the solution $($No DL or All DL in January$)$ you recommend.

Start a new paragraph and for each of the criteria listed above $($contribution$,$ capacity utilization,

cost and borrowing, and market penetration$),$ explain to me which solution is better for that

criterion. Repeat that for each criterion. In this paragraph, you must provide some data as part

of the comparisons.

In the final paragraph, consider the criteria as a group and explain why your preferred solution is

overall the best. This will force you to make some trade$-$offs $($give up something on one criterion

to gain on another$),$ so be sure you make it clear what the trade$-$offs are and why they were

acceptable to you.

To write a one$-$page summary, start by writing a two$+$ page summary, including everything you

want to say. Then go back and start editing and deleting until you get it down to one page.

As for grading, as noted, I will take off points for misspellings, misuse of words and poor

grammar $($noun$/$verb agreement, undefined pronouns, and misuse of punctuation, to list only a

few possibilities$).$ Think of this as a professional document, one you are handing to your boss.

As always, think of your boss using your one$-$page summary to defend your recommendation to

another person. You must provide a clear, well$-$explained defense of why your preferred

solution is the better solution.