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Figure 1 shows production data for Joe Soap , a bulk cleaning manufacturer , based in Springs . Average monthly demand currently sits
Figure 1 shows production data for " Joe Soap " , a bulk cleaning manufacturer , based in Springs . Average monthly demand currently sits at 1500 tons per day . Current demand levels are such that the company is usually able to meet customer needs over a month period . There is an opportunity for further customer demand of 350 tons per day . This would mean that average production would now need to be 1 850 tons per day . Due to the fact that daily production often exceeds this value , the manager has decided to accept the additional business and push production targets up , initially to 1 700 tons per day for a two month period , ramping up to the full 1 850 tons per day in 3 months time . a ) Comment on the current nature and capacity of production output at Joe Soap . b ) Is it advisable for the manager to pursue his strategy of pushing production targets up ? Justify your
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