Andrews Corporation manufactures proximity sensors that appeal to consumers of both the low-tech and high-tech markets. The company aims to create high-quality sensors that protect, serve, and enhance customer experiences Andrews strives for success by focusing on its customers’ satisfactions, empowering its employees, and creating effective sensors efficiently. The company’s main customers are car manufacturers because the proximity sensors are suitable for the upcoming self-driving car industry. Andrews plans to make its presence in both the low-tech and high-tech markets with three sensors: Able, Axis, and Alpha. The company uses Able and Axis to appeal to the low-tech markets. However, Andrews plans on differentiating Axis from Able by …show more content…
To appeal to consumers, the prices for these low-tech sensors will decrease each year by 1.0. This decrease will be accessible to reducing of labor costs through increasing automation. Andrews want to reach accessibility and awareness levels of 100% to reach the entire potential market. The company plans on spending $1,000,000 on accessibility and awareness to reach its goal. Once this goal is meant, Andrews will spend 1000 to maintain these levels. In regards to production, Andrews wants to reach 80% automation for the low-tech because this level provides the lowest labor costs. To reach this goal, the company will increase automation by 6% each year. For the high-tech, the automation goal is 50%. The company will obtain this goal by increasing automation each year by 10%. The initial purchase of automation is expensive but will benefit in the long-run. When overtime reaches 50%, Andrews plan to increase production capacity by 200,000 to 300,000 sensors. If overtime is too high, Andrews will spend too much on higher labor costs. Therefore, the company will buy more capacity to maintain capacity at an optimal level of 20%. This level minimizes costs of meeting demand and