Answer to Question #224430 in Management for Ronak

Question

NM Ltd a leading corporate in India in FMCG has decided to diversify into Foods & Beverages and get in the manufacturing of a flavoured soft drink and a health drink. The company would like to have a major presence with a pan India distribution network.Assuming that the business idea would have a very encouraging response, suggest a suitable plant location to setup the beverage manufacturing. Give reasons for the same. (5Marks)Defining the concept of aggregate plan for operational capacity management, which strategy (Level or Chase) do you think would be best applicable for the company? (5 Marks)

Answer 1

There is an increase in the demand for healthy beverages, including soft drinks, all around the world. In a similar vein, the Indian food and beverage manufacturing industry may experience rapid expansion in the future. Plastics bans, increased health consciousness, and product traceability in coronavirus situations are just a few of the difficulties these manufacturing sectors

Production outputs and prospective activities of different sorts of businesses are considered to be operational capacity management when it comes to ensuring and optimizing those outputs and activities under all conditions. Similarly, business capacity is measured using capacity management programs to accomplish corporate objectives such as an increase in sales.