Bluepeak Logistics (logistics, Southeast Asia) is turning away orders. Demand runs at 2805 units per week, but the plant cannot keep up, and the sales team reports losing deals to competitors on lead time.
Line capacity by stage (units per week):
| Stage | Capacity |
|---|---|
| 1. Intake and preparation | 2033 |
| 2. Primary processing | 1413 |
| 3. Assembly | 2001 |
| 4. Finishing and dispatch | 1749 |
The plant manager has requested $166 M for new finishing equipment, which would add 591 units per week of finishing capacity. He argues the finishing area "is where the queues are visible".
An external contractor has offered to take overflow work at a 37% cost premium over in-house production, available within six weeks.
Advise the operations director. Provide:
Address the plant manager's capex request directly.
100 points, 60% to pass.