Introductory Lesson




  Production

The production department can also sell some or all of a product line's plant capacity. Capacity is sold at 65% of the purchase price. The money is immediately available. This very generous scrap-rate means teams are not penalized for closing down a line to reconfigure the company.

Selling all of a line's plant capacity terminates the product. When products are discontinued, any remaining inventory is sold to scrappers at 50% of the cost of production.

The production department must purchase capacity and automation for any new products. Remember, capacity and automation will not be available until the round following their purchase.