REFINING CONTRIBUTION MARGINS FOR IMPROVEDRESPONSE TO MARKETS – AN IE APPROACH

摘要

This paper is based on the production operations of a unit that produces wood products. The actual name ofthe production unit and the company that owns it, along with other vital information are kept confidential.The analysis of relevant data received from the company led to the conclusion that company is marketingits products without adequate analysis of the contribution margins generated by each product manufacturedand sold by the company. The authors have observed that the Industrial Engineering (IE) approach to thestudy of business operations can be helpful in refining their strategies to respond to market conditions.