Unit Three Written Assignment
Matthew Snyder
MT435 Operations Management
Kaplan University
November 25, 2013

Introduction
Hello Albatross Anchor and thank you for allowing us to come in to your place of business with the efforts to try and assist with your production process. KU Consulting will begin to determine what areas could use a revision in several different areas to make Albatross Anchor a profitable business. In order for us to assist you, we will make some recommendations of the business within your financial boundaries. We are here to assess and deliver a system that will be an all around bonus to your business in providing you with such details. We will begin review process with the administrative side and then lead into the cost of production. This will lead us into taking a closer look into several different areas with cost of raw materials sitting idle, cost of finished goods sitting idle, the production process to the start of the order to the finished product. We will also determine the areas of flexibility to fill orders, technology (machinery), capacity/facilities, and the most important process of all, how service to the customer is being provided. I hope that KU Consulting is able to give Albatross Anchor some great ideas that will make this a larger, competitive, and profitable business and look forward to assisting you with this process in getting you to that level.
Question One
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions):
1. Cost
a) Cost of Production:
Currently Albatross Anchors sells two different types of anchors. They produce and sell their bell/mushroom anchors at $8.00 per pound and sell their snag hook anchors at $11.00 per pound. When selling their products,