The production schedule is the number of units you wish to build this year. The production the firm can schedule for a product depends on our production capacity. The company can schedule up to double the first shift capacity for each product since we have two shifts of workers. For this reason, in year one thru eight, Able and Abby consist of a production ordered of 1300, 1510, 1533, 834, 280, 1550, 799 and 1070 units. Abby production orders comprised of 300, 700, 551, 350, 655 and 710 units. Moreover, Ace production ordered in year five was 200 units (Capsim.com, n.d). Conversely, capacity is the volume of products that can be generated by a production plant or enterprise in a given period by using current resources. Capacity determines the…show more content… However, Abby received an additional increase of 400 that changed its overall capacity level to 750. Moreover, Ace receive a capacity change of 700 in year four, but in year five, 500 and 350 of Ace and Abby capacity were sold to raise funds. Likewise, in year six, seven and eight the remainder of Ace 200 was sold, and the product was officially eliminated, 200 of Able capacity was sold due to being underused (Capsim.com, n.d). On the other hand, the firm used industrial automation that is robotic devices to complete manufacturing task. As automation levels increase, the number of labor hours required decreases causing the cost of labor to decrease. However, automation is expensive, so it should be used with caution. Therefore, over the first three year period, automation level of 3.0 remained the same. As a result, the company labor cost did not fall. The avoidance in the decrease of the company labor cost contributed to contribution margin percentages (26%, 35.6% and 35.1) equipped to handle all fixed cost. However, in year five and six automation was increased to 3.5(Capsim.com, n.d). For the most part, increasing automation-assisted with lowering labor cost, building leverage, and increasing the contribution
