Question: CASE Midas Gold Juice Company makes lids with a current capacity of You are the purchasing direct…

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Jun 13, 2022

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Question: CASE Midas Gold Juice Company makes lids with a current capacity of You are the purchasing direct…

by | Jun 13, 2022 | Questions & Answers


I only need #2 answered plus #3 how can/does this problem
impact their business
CASE Midas Gold Juice Company makes lids with a current capacity of You are the purchasing director for Midas Gold Juice Com- The tin department pany, a a line of premium, limited-run fruit juice (Slogan: Midas into the can bodies Juice-Youll be touched by the Gold). As one of your of tin per month, and each sheet produces 12 can bodies. responsibilities, you review all requests for capital equip. The bodies and lids are assembled in the filling department ment that costs $10,000 or more. Recently, you have received where they are filled and sealed. The design capacity of the a request from the production department to purchase an filling department is 50,000 cans per month. additional stamping machine. This machine will double the capacity of the tin shop from its current level of 80,000 lids (design capacity) to 160,000 lids. Every can needs two lids. 1. What is your response to the request for the new Production managers also claim that the new machine will machine balance the line and improve output dramatically small Midwestern fruit-juice company that produces 80,000. The stamping department converts sheets of tin The tin department uses 4,000 shects Questions 2. Identify any concerns that you have. (Hint: Think about In reviewing the request, you decide to examine the production process. You find a fairly straightforward pro- this question.) cess that starts by squeezing the juice from the fruit and storing it in tanks, On average, these tanks hold 4,000 gal- Hints lons available at any time. Under ideal circumstances, this 1. amount fills 40,000 cans per month. the process and its design capacities when answering Make sure that you express all the capacity in the same units. The can-making process has two stages. In the first, 2. You may want to use the process mapping and analysis techniques described in the supplement to this chaptc the cans are made in two steps involving two departments.

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CASE Midas Gold Juice Company makes lids with a current capacity of You are the purchasing director for Midas Gold Juice Com- The tin department pany, a a line of premium, limited-run fruit juice (Slogan: Midas into the can bodies Juice-You'll be touched by the Gold). As one of your of tin per month, and each sheet produces 12 can bodies. responsibilities, you review all requests for capital equip. The bodies and lids are assembled in the filling department ment that costs $10,000 or more. Recently, you have received where they are filled and sealed. The design capacity of the a request from the production department to purchase an filling department is 50,000 cans per month. additional stamping machine. This machine will double the capacity of the tin shop from its current level of 80,000 lids (design capacity) to 160,000 lids. Every can needs two lids. 1. What is your response to the request for the new Production managers also claim that the new machine will machine balance the line and improve output dramatically small Midwestern fruit-juice company that produces 80,000. The stamping department converts sheets of tin The tin department uses 4,000 shects Questions 2. Identify any concerns that you have. (Hint: Think about In reviewing the request, you decide to examine the production process. You find a fairly straightforward pro- this question.) cess that starts by squeezing the juice from the fruit and storing it in tanks, On average, these tanks hold 4,000 gal- Hints lons available at any time. Under ideal circumstances, this 1. amount fills 40,000 cans per month. the process and its design capacities when answering Make sure that you express all the capacity in the same units. The can-making process has two stages. In the first, 2. You may want to use the process mapping and analysis techniques described in the supplement to this chaptc the cans are made in two steps involving two departments.

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