Relevant Costs for Making Production Decisions: Was General Motors Making the Correct Choice in Producing High Volumes of Autos?
In deciding the type and quantity of vehicles to produce, it is important that managers anticipate the quantity of products or services customers will demand at various price levels—and the associated costs. This case asks students to analyze the data and consider whether GM’s management made the wrong business decision in producing the cars they did.
This is one of a collection of cases that comprise the General Motors Integrated Case, viewing GM’s business issues from multiple perspectives, devised specifically to be taught in Columbia Business School’s Core curriculum.
Case id: 112103
Supplemental Material: Teaching Note