Operations Decision

Operations Decision
Assume you have been hired as a 
managing consultant by a company to offer some advice that will help it make a 
decision as to whether it should shut down completely or continue its 
operations. It currently uses 100 workers to produce 6,000 units of output per 
month (working 20 days / month). The daily wage (per worker) is $70, and the 
price of the firm's output is $32. The cost of other variable inputs is $2,000 
per day. You are told that the firm's fixed cost is “high enough” so that the 
firm's total costs exceed its total revenue. The marginal cost of the last unit 
is $30.  (Ch 7 & 8 to solve)

This assignment allows you to determine 
the specific details about this fictitious company in order to conduct an 
environmental scan of this company.  

Write a three to four (3-4) page 
paper in which you:

1.	Briefly describe the details of the fictitious business that you created for 
this assignment.
 
1.	Assess the current environmental scan factors that are relevant to the 
decision making process. Determine the factors that will have the greatest 
impact on plant operations and management- decision to continue or discontinue 
operations. Provide a rationale for your determination.
 
1.	Evaluate the financial performance of the company using the information 
provided in the scenario. Consider all the key drivers of performance, such as 
company profit or loss for both the short term and long term and how each factor 
influences managerial decisions. Be sure to show the calculations that helped 
you reach your conclusions. 
 
1.	Recommend how the company can improve its profitability to deliver more 
value to its stakeholders. Then, develop a brief plan to implement the 
recommendations. 
 
1.	Assess the circumstances in which the company should discontinue operations 
and how management should react when confronted with these circumstances. 
Provide a rationale with your response. 
 
1.	Use at least three (3) high-quality academic resources in this assignment. 
Note: Wikipedia and other Websites do not qualify as academic 
resources.

Your assignment must follow these formatting 
requirements:

•	Be typed, double-spaced, using Times New Roman font (size 12), with one-inch 
margins on all sides; citations and references must follow APA or 
school-specific format. Check with your professor for any additional 
instructions.
 
•	Include a cover page containing the title of the assignment, the student- 
name, the professor- name, the course title, and the date. The cover page and 
the reference page are not included in the required assignment page length.