Business Problem:
Expanding Production Capacity

 
 

Virtual Office Solutions Inc. (VOSI) is one of the world leading suppliers of portable electronics. This includes cellular phones, laptop computers, personal electronic organizers and other products. Recently the R&D department came up with the new personal organizer Virtual Assistant that has unique and very useful features.

VOSI's connected organizer, launched last year, is a hand-held computing device designed to work with desktop and laptop computers, allowing personal information management both remotely and on the desktop. The Virtual Assistant can be connected to the user's Windows PC or Macintosh computer and allows for automatic back-up and seamless synchronization of information between the device and the larger computer, thus ensuring that both systems have the most current information. The product allows users to carry and edit their personal data, such as thousands of addresses, phone numbers, appointments, and personal notes with them everywhere they go.

VOSI markets hand-held electronic connected organizer products directly to high-volume resellers, such as mass merchandisers and computer superstores. Currently the Virtual Assistants are manufactured on the same plant that produces the rest of VOSI's products, but with the steadily growing demand the plant has reached its capacity. The Board of Directors decided to build a new plant specifically for manufacturing of the Virtual Assistant. This would free up some of the old plant's capacity for production of other products and would enable VOSI to set up equipment specific to production of the Virtual Assistant.

The Board of Directors wants a concrete proposal on the best strategy of such expansion.
 

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