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  • Capacity Management

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    Ankur Gupta
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    The document contains production data for two companies, Paul's and Newman's, over 4 years. It also contains details of the production capacity and requirements for bottles and plastic bags. There are three scenarios presented for the business - moving locations, expanding current operations, or doing nothing. The revenue, costs and profits are estimated for each scenario under both strong and weak growth conditions.

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    capacity management

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    The document contains production data for two companies, Paul's and Newman's, over 4 years. It also contains details of the production capacity and requirements for bottles and plastic bags. There are three scenarios presented for the business - moving locations, expanding current operations, or doing nothing. The revenue, costs and profits are estimated for each scenario under both strong and weak growth conditions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views5 pages

    Capacity Management

    Uploaded by

    Ankur Gupta
    The document contains production data for two companies, Paul's and Newman's, over 4 years. It also contains details of the production capacity and requirements for bottles and plastic bags. There are three scenarios presented for the business - moving locations, expanding current operations, or doing nothing. The revenue, costs and profits are estimated for each scenario under both strong and weak growth conditions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Year

    Brand
    1 2 3 4
    Paul’s
    Bottles (1000s) 60 100 150 200
    Plastic bags (1000s) 100 200 300 400

    Newman’s

    Bottles (1000s) 75 85 95 97

    Plastic bags (1000s) 200 400 600 650

    Bottle Demands 135000 185000 245000 297000


    Machine Capacity 150000 150000 150000 150000
    # no of machines 3 3 3 3
    Production Capacity 450000 450000 450000 450000
    Labour/mAchines 2 2 2 2
    Labour For 3 machines 6 6 6 6
    Capacity utilisation 0.3 0.41111 0.54444 0.66
    Machine requirements 0.9 1.23333 1.63333 1.98
    Labour Requirements 1.8 2.46667 3.26667 3.96

    Plastic Bag Demands 300000 600000 900000 1050000


    Machine Capacity 250000 250000 250000 250000
    # no of machines 5 5 5 5
    Production Capacity 1250000 1250000 1250000 1250000
    Labour/Machine 3 3 3 3
    Labour For % machines 15 15 15 15
    Capacity Utilisation 0.24 0.48 0.72 0.84
    Machine Requiremnts 1.2 2.4 3.6 4.2
    Labour Requirements 3.6 7.2 10.8 12.6
    No of machines for Bootles 3
    5 Machine Capacity package 150,000 Bottles
    No of Machines 5 for Bags
    250 Machine package capacity 250,000 Bags per year
    500

    98

    680

    348000
    150000
    3
    450000
    2
    6
    0.77333
    2.32
    4.64

    1180000
    250000
    5
    1250000
    3
    15
    0.944
    4.72
    14.16
    Each machine has 3 operations
    ags per year
    Scenario Revenue Cost
    1 Move + Strong growth 975000 210,000
    Move +Weak Growth 575000 210,000

    2 Expand +Strong 950000 87000


    Expand +Weak 500000 87000

    3 Do nothing + Strong Growth + Expand After 1 years 930000 87000


    Do nothing +Weak Growth +Do nothing 525000 0
    NO nothing + Weak Growth
    Profit
    765,000 420750
    365,000 P{MOve] 164250
    585000

    863000 474650
    413000 P{Expected] 185850
    660500

    843000

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