Midat Gold juice

Topics: Supply and demand, Economics terminology, The Current Pages: 1 (279 words) Published: October 11, 2013
Written Executive Brief: Midas Gold Juice Company
The problem that Midas Gold Juice Company has is that the company should purchase new machine to produce more cans up to 40,000. It is not necessary to purchase stamping machine to double the tin shop level to 16,000. Recommendations/Actions:

Based on the current juice produce capacity:
Base on the current produce level, we could see the current capacity level for producing can bodies are not balanced with other departments. Can bodies is not many enough so that to fill all of its juice. As the case mentioned, the company could produce 4,000 gallons on average, which could fill 40,000 cans per month. And one can need two lids, which is accurately satisfied by the tin department. The filling department could satisfy the produce department by 10,000 more filling capacity. The problem turns up being is that the tin department need extend its capacity to produce 40,000 can bodies per month instead of doubling the lids capacity. Based on the demand of the market:

As long as the company could satisfy the market by providing 2,800 gallons juice per month, nothing is necessary to be changed. However, when the company needs to provide a range from 2,800 gallons to 4,000 gallons per month to satisfy the market demand, the capacity of producing cans bodies is the only thing that needs to be changed for the process balance (as I wrote above). Once the company decides to extend its market sells, and pull its sells equal 5,000 or more gallons per month. The require capacities for each department has exceeded than its current level. Thus, all the departments need to change their produce capacities to fit in the new process.
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