The chief operation officer (COO) of Long Wang Sha Tan Ku Company, a boardshorts manufacturer based in Shanghai, China, was expected to present a plan to improve the company's profitability through adjustments to the company's operations. There were at least three possible paths to increase profitability. First, reviewing how production was scheduled between the company's two manufacturing facilities. Second, since the company operated at capacity during busy times, he thought that it might be beneficial for the company to expand capacity in one of its manufacturing facilities. Finally, the COO wondered whether some price adjustments could help out of the company's supply chain and increase contribution.
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