Question

Heinz produces ketchup in two sizes 16 FIOz and 32FlOz. Management would like to determine equipment and labor requirements for the next five (5) years. What is the most effective approach for Heinz to ensure efficient capacity management in this scenario?

a. Invest in advanced automation technology to streamline production processes and minimize labor requirements.
b. Increase the number of laborers while maintaining the current equipment to meet the growing demand effectively.
c. Implement a flexible production system that can easily adapt to changing market demands and product variations.
d. Reduce the product size options to focus on one standard size, thereby simplifying production processes and reducing complexities.

Answer 1

The most effective approach for Heinz to ensure efficient capacity management in this scenario is to implement a flexible production system that can easily adapt to changing market demands and product variations.

Step-by-step explanation:

The most effective approach for Heinz to ensure efficient capacity management in this scenario is to implement a flexible production system that can easily adapt to changing market demands and product variations.

By implementing a flexible production system, Heinz can efficiently use its equipment and labor resources to meet the growing demand for both 16 FlOz and 32 FlOz ketchup sizes.

This approach allows Heinz to have the necessary capacity to produce different sizes of ketchup without the need for significant investment in new equipment or hiring additional labor.