Question: Tesla is producing four models in its facilities in cities around the world: Model 3 , Model S , Model X , and Model Y
Tesla is producing four models in its facilities in cities around the world: Model Model S Model X and Model Y It is estimated that demand for each car model in will be or units; with probabilities and respectively. The company is focusing on assembly plants in this problem: Fremont Model Austin Model S Gru nheide Model X and Shanghai Model Y each dedicated to one particular model.
a The company decides to establish units of capacity in each plant prior to and has no chance to change that within the year. What is the expected total sales for Tesla in b If the company can adopt a complete flexibility configuration and still establishes units of capacity in each assembly line prior to what is the expected total sales for Tesla in
c It turns out that a complete flexibility configuration can be very costly Tesla is interested in a limited flexibility configuration such that each model can be produced in one other line. Tesla decided to invest in plants such that Fremont can also produce Model S Austin can also produce Model Gru nheide can also produce Model Y Shanghai can also produce Model X What is the expected total sales for Tesla in if it uses this configuration? Assume again that the capacity of each plant is
d Recommend a better limited flexibility configuration to Tesla. Construct a demand scenario in which the total demand is partially satisfied in the previous configuration in part c but fully satisfied in the configuration you suggested.
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