Business and Management
Submitted By ariannemallari
VII. Capacity Planning (2 pages max) a. What is the current capacity of the company? Can you identify bottlenecks in their operations? What can you propose to address said bottlenecks? * The current capacities of Messy Bessy are produces all natural products that is environmental friendly and that cannot be harm to their customer’s health, skin, and etc. They can produce products according to their target each day, will produce more in advance for the next day and if there are unexpected orders they can produce it immediately. In terms of service, they assure that they fulfill the needs and orders of their customers without defects to the product. They doing their best to accommodate every customer’s orderly and without being chaos. They also make sure that all the orders are delivered on time without delays.
* The bottlenecks that the company experiencing are when the supply chain are delayed in giving our supplies like labels, bottles, caps and also the ingredients needed in making the content of the products especially on pick season. Also when the content of the products is not already mix by the mixer there will be a delay in producing the particular product. In terms of the workers, if most of them are absent there will be no enough person in labeling and pouring the products need to produce especially if there’s a customer that requested to produce his/her order as soon as possible and also the production will not be productive.
* I should propose to address the said bottlenecks above is first to talk to the supply chain that if possible they have enough stock of the supplies or give the supplies they needed as soon as they requested or the day after. In content of the product maybe mix it on the day it was schedule or in advance.
b. By just looking at the operations, do you think that the company have higher fixed costs or variable costs? What comprises their fixed costs and variable costs? Given your analysis, do you think that the company will have much gain from economies of scale?