Clear Hear Scenario

Clear Here Scenario

Clear Hear, a manufacturer of cellular phones. Clear Hear’s business development specialist is Kendra Sherman and their production manager is Lisa Norman. Together they have to make a decision in which they have to accept an order for a particular product which will then require them to displace another product from production. Big Box has placed an order for 100,000 cell phones and Kendra is anxious to provide the customer with the order, but by doing so has to confront a situation, because the current volume Clear Hear has is access to 70,000 cell phones in the price range Big Box is willing to pay which is up to $15 per phone.

Clear Hear’s goal is to provide a reliable product to their customers. Clear Hear would additionally like to keep the employees working as well as treat their partners the way they would like to be treated. Kendra would like to fulfill the order providing the best production quality. The problem is that the order must be delivered within 90 days and at current production, Clear Hear does not have the volume to complete the order without some alternative solutions.

In a manufacturing company, the firm conducts analysis if to accept and generate requested order based on the ability of the facility, and consider all costs such fixed costs, variable costs, and opportunity costs. In this scenario, Clear Hear producers of cell phones must make a decision to agree to the order from the major chain Big Box. To move forward, the organization must figure out how the cost being fixed or variable would be adjusted to produce more profits. The company needs to analyze, evaluate, and identify alternatives then finally Clear Hear needs to recommend the best alternative solution and articulate how it best meets their goals.

Initially, we need to figure what are the company's objectives and the management’s decisions support its goal. Clear Here company values the following (University of Phoenix, 2010):

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