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A company is introducing reusable straws in the market on the 1st of January 2022. They estimate the total market for reusable straws is approximately 3 million per year. The company expects to sell 500000 straws in the first year. There is a competitor already in the market whose sales per year is 1 million straws per year. Your group have been hired as consultants to answer the following questions: Q1- The company is building a facility to produce 1 million straws per year. Is this capacity just right, too little or too much? What factors will you consider in building capacities? Should they adopt a a) leading strategy b) lag strategy or c) straddle strategy to build further capacities. Please justify

A company is introducing reusable straws in the market on the 1st of January 2022. They estimate the total market for reusable straws is approximately 3 million per year. The company expects to sell 500000 straws in the first year. There is a competitor already in the market whose sales per year is 1 million straws per year. Your group have been hired as consultants to answer the following questions: Q1- The company is building a facility to produce 1 million straws per year. Is this capacity just right, too little or too much? What factors will you consider in building capacities? Should they adopt a a) leading strategy b) lag strategy or c) straddle strategy to build further capacities. Please justify

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A company is introducing reusable straws in the market on the 1st of January 2022. They estimate the total market for reusable straws is approximately 3 million per year. The company expects to sell 500000 straws in the first year. There is a competitor already in the market whose sales per year is 1 million straws per year. Your group have been hired as consultants to answer the following questions:

Q1- The company is building a facility to produce 1 million straws per year. Is this capacity just right, too little or too much? What factors will you consider in building capacities? Should they adopt a a) leading strategy b) lag strategy or c) straddle strategy to build further capacities. Please justify.

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