Sandwich Bags

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Intermediate
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Case Prompt

Your client is a very small consumer packaging company. One of their product lines is plastic bags that are designed to store food. They currently have one production machine dedicated to this product.

Since product demand currently exceeds your client’s production capacity, they want you to answer two key questions:

1. How can they best utilize their current bag capacity?

2. Should they invest in a new bag machine?

Sample Structure

I. Product/Capacity

I. Product/Capacity – Question1: What mix of products should our client produce?

II. New Machine – Question 2: Should the client invest in another roller? ​

II. New Machine – Question 3: Why might it be a good idea to invest in a new machine?

III. New Product – Question 4: If we were to produce a new bag, what annual profit is required in order to justify investing in a new roller?

Situation:

The client’s R&D team has just come out with a new bag. It’s a 2-in-1 bag, one side holds your sandwich and the other side holds your chips or lettuce to keep things from getting soggy. This bag is 6”.

III. New Product – Question 5: Draw the graph that represents the different profit/quantity combinations that would justify an investment in a new roller. Does this curve have any end points for our c

IV. Conclusion

Further Questions

If we introduce a new product, what risks should we take into account?

9.7k
Times solved
Intermediate
Difficulty
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