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The store is quite confusing to me as it doesn't seem to follow the rules of mass production.

Surely, if I were to produce more of a certain item, the cost per unit would drop as the initial (fixed) costs would be spread over a larger number of units. As well as this, the production time per unit should also decrease as the startup time is also spread over a larger number of units.

Think of this example: For tomorrow's newspaper, time will be needed to compile all the information and put it together in an acceptable format. Thus, the time to print one copy of the newspaper (including the preparatory work) may be, for argument's sake, 1 hour. Of that 1 hour, 59 mins might be preparatory time and 1 min is the actual printing and stapling of the paper. If I were to then print 100 copies, the actual time would be 159 mins (59 for prep; 1 x 100 per copy) which means that the time per unit drops to 1.59 mins (or 1 mins 36 secs) per unit.

Using the same example as above for the cost, the initial costs for printing the paper would include paying the salaries of the reporters, the designers etc. Those costs will not change as you pay those staff members on a monthly basis, but the more copies you print, the more you can spread those costs.

Another point is that we have not been told how the sales are calculated. For example, do you sell more on a match day? Do you sell less if you lose? And why are we not able to set our own prices?

My suggestion:

Up to 1000 units produced : price is what it is now i.e. price per keychain is €5.00 / time is what it is now i.e. time per keychain is 5.0 secs
1001 - 2000 : price per unit reduced by €0.50 i.e. price per keychain is €4.50 / time per unit reduced by 0.5 secs i.e. time per keychain is 4.5 secs
2001 - 3000 : price per unit reduced by €1.00 i.e. price per keychain is €4.00 / time per unit reduced by 1.0 secs i.e. time per keychain is 4.0 secs
3001 - 4000 : price per unit reduced by €1.50 i.e. price per keychain is €3.50 / time per unit reduced by 1.5 secs i.e. time per keychain is 3.5 secs
4001 - 5000 : price per unit reduced by €2.00 i.e. price per keychain is €3.00 / time per unit reduced by 2.0 secs i.e. time per keychain is 3.0 secs

The above will also give an incentive for people to improve their store level
21/10/2012 07:55
  - Div/Gr
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Key chains for example aren't like newspaper where you take a huge amount of time to write and then you just print everything...so I don't understand what is the "preparatory work" time you are talking about related to the store items....You don't print and staple key chains on paper, you manufacture them all so really I don't see why the work would get faster all of the sudden.

But I have a simple answer to the problem, they should let us hire more employees, I think my store only has 1 and that is why everything is so slow.

21/10/2012 09:06
  - Div/Gr
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210 msgs.
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You'd still need to put the materials in the machine, design the keychains, transport them to the stores etc.

I've had merchandise like this made before and the delivery time between 1000 and 2000 of a certain item is usually the same
21/10/2012 15:14
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3449 msgs.
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@patient said:
Key chains for example aren't like newspaper where you take a huge amount of time to write and then you just print everything...so I don't understand what is the "preparatory work" time you are talking about related to the store items....You don't print and staple key chains on paper, you manufacture them all so really I don't see why the work would get faster all of the sudden.

But I have a simple answer to the problem, they should let us hire more employees, I think my store only has 1 and that is why everything is so slow.



When most anything is produced it's cheaper to make multiples than it is to make one of the item.

Say I was molding keychain parts and then an assembly line was putting them together. Lets say the setup cost for the molding was $100, and raw materials were $1 per keychain. If I produced 100 key chains each one costs me $2 to make, but if I decide to make 200 then the cost per unit drops to $1.50. There are many other factors that go into prices of items obviously but the basics are that items get cheaper as more are made.

However if I'd rather see the devs tweak the store or work on literally anything else, I'd rather see other more needed tweaks.
22/10/2012 00:11
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Everything didn't needs to be complicated.

As I think about it, it was the tag line of the message sent for stores.

But if you want something logical, mould you get when you upgrade the store.
Labour is on per piece basis so the cost is 100% variable. You are the manager so no fixed salary for you.
There is only 1 supplier and you have made a purchase order with him for the price so ni variation in price no matter how much you produce.

Edited by @bluegene 22-10-2012 02:16
22/10/2012 02:09
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illex said:
@patient said:
Key chains for example aren't like newspaper where you take a huge amount of time to write and then you just print everything...so I don't understand what is the "preparatory work" time you are talking about related to the store items....You don't print and staple key chains on paper, you manufacture them all so really I don't see why the work would get faster all of the sudden.

But I have a simple answer to the problem, they should let us hire more employees, I think my store only has 1 and that is why everything is so slow.



When most anything is produced it's cheaper to make multiples than it is to make one of the item.

Say I was molding keychain parts and then an assembly line was putting them together. Lets say the setup cost for the molding was $100, and raw materials were $1 per keychain. If I produced 100 key chains each one costs me $2 to make, but if I decide to make 200 then the cost per unit drops to $1.50. There are many other factors that go into prices of items obviously but the basics are that items get cheaper as more are made.

However if I'd rather see the devs tweak the store or work on literally anything else, I'd rather see other more needed tweaks.

Still, does this have anything to do with the work getting faster all of the sudden? I didn't talk about cost price...
22/10/2012 02:40
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The work can only get faster if you have more resources (labour and machine). As you already said there is only one. Which is as per me a good thing. This provides the lower division teams to cover a substantial portion of their weekly expense and at the same time dont give too much money to higher division managers who can spend millions for extra hand. 22/10/2012 02:50
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1382 msgs.
International
But cant we have an option were we hire more children to mass produce products at a cheaper cost so we can maximize that result thing called profit? Yea,.. That should work. everyone, open a china school! 22/10/2012 13:54
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3449 msgs.
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@patient said:
Still, does this have anything to do with the work getting faster all of the sudden? I didn't talk about cost price...


Sorry, I was on my phone when I read the thread initially, so I didn't read it as thoroughly as I should have. I thought the OP was only talking about price to make each item.

Time to produce one item can go down because of many varying factors, but there are still tons of variables that would play into that fact that it doesn't make a ton of sense to add in lower times. If this was manufacturing manager I'd make an argument for it, but this isn't.
22/10/2012 15:21
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116 msgs.
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STOP WITH THIS STORE NONSENSE! FIX THE ******* OFFSIDE PROBLEM!!!!!!!! 22/10/2012 16:02
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