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Lecture 1

The document discusses setting up a plant, dividing total demand into groups, and how production costs increase with capacity allocation. It also mentions developing technology in-house over a year versus buying technology and a license immediately.

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niki
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28 views

Lecture 1

The document discusses setting up a plant, dividing total demand into groups, and how production costs increase with capacity allocation. It also mentions developing technology in-house over a year versus buying technology and a license immediately.

Uploaded by

niki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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 2 years to set up a plant

 Divide the total demand by 12 (no of groups)


 As capacity allocation increases, production cost per unit increases
 In house tech devop – takes one year (next round)
 Buying tech and license – available immediately (in that particular round)
 Don’t go for short-term loans

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