Example Sensitivity Analysis

Boston Metal Company (BMC), a small manufacturer of fabricated metal parts, must decide whether to enter the competition to be the supplier of transmission housings for Gulf Electric. Gulf Electric has its own in-house manufacturing facility to produce transmission housings, but it has almost reached its maximum production capacity. Therefore, Gulf is looking for an outside supplier. To compete, the firm must design a new fixture for the production process and purchase a new forge. The new...