Model Number

Enter the model number to be produced during the quarter.  For Year 3, Quarter 1 the only model available is Number 1 and you are producing it at Quality level 2.  The latest model number developed by the research and development department, together with the applicable labor and materials costs, will be reported in the Operating Information Report each quarter.

Model numbers are sequential (Models 1, 2, 3, etc.).  Your company's Model 2 (when it becomes available for production) will have different marketing characteristics than another company's Model 2.  If a new model is available and your company wishes to put it into production, enter the new model number.  Otherwise, enter the same model number that was produced in the previous quarter.  If model number 4 is reported to be available, and your firm decides to introduce it, enter 4 on the decision form.  Production of a new model begins immediately.  Sales of the new model begin the following quarter unless your firm stocks out of the old model in the current quarter.  In that case, when all units of the old model have been sold, the new model is substituted to fill any further demand.  

IMPORTANT NOTE: The demand during the first quarter of a new model's production is for the OLD model—not the new model. The new model will not officially go on sale until it has been in production for one calendar quarter to build inventories.

Maximum:  Highest model number reported to be available from the R & D Department.

Minimum:  Same model number as was produced last quarter.  Once a new model has been placed in production, an earlier model may not be reinstated.

Limits:  1 to 12