Path: utzoo!mnetor!uunet!husc6!mit-eddie!uw-beaver!tikal!hplsla!hpvcla!ericr
From: ericr@hpvcla.HP.COM (Eric Ross)
Newsgroups: comp.sys.atari.st
Subject: Re: Atari's Marketing Approach
Message-ID: <4730015@hpvcla.HP.COM>
Date: 18 Dec 87 17:24:21 GMT
References: <871125203243.075429@HIS-PHOENIX-MULTICS.ARPA>
Organization: Hewlett Packard, Vancouver, WA
Lines: 20

Since I am a Manufacturing Engineer at a division of Hewlett Packard 
that builds computer peripherals, maybe I can lend some insight.  
There are several constraints that can potentially restrict your 
production rate.  Your comment of cranking up the line is valid, however
lead times on materials for the product can be anywhere from 3-9
months.  This implies that advance planning is required.  
Therefore, your response in this case is limited by the response of
your suppliers.  On the other side of the coin, there has been no
mention of the highest capacity of the ST production line.  Maybe it
already is maxxed out.  In this case, duplication or enhancement of
the line is required.  This can take anywhere from 6 months to years
to accomplish.  A manufacturer of any product has to walk a very fine
line between overproduction(heavy inventory; high expenses) and 
under production(opportunity costs).  Predicting the market accurately 
is probably one of the toughest jobs there is and very few do it well
all of the time.

Eric Ross
hplabs!hpvcla!ericr
Hewlett Packard--Vancouver Division.