Product differentiation

Q:  The data entry page presently allows the teams to enter only one product model.  The manual states that stocks from older models are automatically sold first, and newer models can only then be sold in the market.  Does this mean that the teams cannot pursue any differentiation strategy, selling model 2 in Sereno, for instance, and model 3 in Merica?  No teams have yet got a second factory up and running.  When they do, assuming their R&D provides them with the models, can they produce different models in different factories simultaneously?  And how does the product model allocation to the marketplace work then?  Most teams want to implement different pricing and quality strategies in the two countries - is this possible?  If not, what's the purpose of having different market areas (as opposed to different production areas), and if they can differentiate, what do they enter where?

A:  Only one product model can be produced by a company at any point in time.  To do otherwise introduces a great deal more complexity and we believe the simulation is complex enough at this time.  However your firm may produce the current product with different quality and feature levels in each market area.  Once quality and feature levels are specified for an area, they may be changed only when a new model is introduced.  Because units of a model are custom made to the specifications of each sales office, unsold units in one area may not be shipped to another market area.  This includes units that are not shipped to a sales office in another area due to production levels exceeding sales office orders.  These units are created according to the specifications of the sales office in the area where they are produced.

You may differentiate product in different areas using the marketing variables product quality, product features, promotion and price.  The addition of the sales offices adds a place dimension and an interesting inventory control problem.  It is not enough to have inventory at a plant, it must be available to sales offices making sales.