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Hello Mr John. In the example in the note where you say John has a factory with the maximum capacity of 1,200. A customer signed a contract to get certain units before the rest are sold to normal customers. A situation where John produces 700 units and the demand from the contract customer is 800 units how is it going to be treated? since it is 16 combinations( 4 vertical, 4 horizontal). Note : I watched the lecture and i have the note. I just dont understand that part.
thanks
John will not produce 700 units – he is capable of producing 1,200 units.
If a contact has been signed for 800 units, then they will produce those 800 units and in addition will produce whatever normal customers demand (up to a maximum of 400 units because in total they cannot produce more than 1,200 units).
I really do suggest that you watch the lecture again 🙂
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