Sandwich Bags

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Sandwich Bags Sandwich Bags
3.9 5 2749
Rating:
3.9 (2.7k ratings)
10.0k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

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?

Do you have questions on this case? Ask our community!
10.0k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!

Exhibits

Case Structure

Production Capacity

Profitability and Demand by Product Type

Total annual profit per product line

Possible profit/quantitiy combinations

Possible profit/quantity combinations