Case study: Determining the range of standard sizes of capital goods to be manufactured

This paper describes a project that was performed to maximize profit from the manufacture of a particular type of fork lift truck, with consideration given to manufacturing quantity, range of sizes and sales price. Sales revenue and manufacturing costs were evaluated for each size of truck at different sales levels. The optimal range of sizes was thon determined using a dynamic programming approach. The results of the study together with an outline of how the work may be extended in the future are discussed.