COMMERCE 4PA3 Lecture Notes - Lecture 4: Dunlop Manufacturing, Aircraft Cabin, Snob

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Growth had resulting in scheduling problems and bottlenecks in the plant. Additional sales from waterloo plant would require alleviating these problems. Recently acquired wool yarn spinning mill near waterloo. Allow dcc to set specific standards for yarn and secure source of supply for major raw material. All products were custom ordered for residential and commercial buyers. Sales made through sales agents and dealers (only a few direct transactions) Breakdown of 1986 annual sales: 20% were residential customers calculate dollar value, 40% were carpet murals for subdividing passenger aircraft, 40% sold as floor covering in offices and hotels. Costs: per square meter for broadloom, per square meter for hand tufted product. Custom wool carpet market: million in north america, growing at 15% annually. Sales distribution: canada = 20, us = 70, outside north america = 10% Has 60% market share in the aircraft industry.

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