Situational Decisions Chapters 9 & 10 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007

Special studies Relevant if: −Q−Quantitative aspects: Makes a difference on cash-flow −Q−Qualitative aspects: Differs between possible decisions

1 Special pricing Example 9.1 page 316

2 Product mix if constraints Example 9.2 page 321

3 Replacing equipment Page 323

4 Outsourcing Exhibit 9.3 page 327

5 Discontinuation (Example not in text book)

Next, we… are going to look at another type of decisions, namely regular pricing decisions. We will see how the pricing depends on the companies role in the marketplace Chapters 11 & 12