Problem
Custom Drapes Inc
A. Rank in order the competitive priorities for CD's custom jobs. Rank in order the competitive priorities for the standard drapery business.
B. What is the break-even quantity (in panels) if Lilly builds the facility and buys the equipment to produce standard panels?
C. Should Custom Draperies accept the proposals to manufacture 32 different drapery panels in order sizes up to 10,000 panels? What are the implications? If the answer is yes, what other operations and logistics decisions are necessary to support this growth initiative? If your answer is no, justify and explain.
D. What are the strategic growth options for Custom Draperies?
E. What are your final recommendations?