The Hi-pro company production
When the company produces above the acceptable upper limit, it indicates that the company has excess inventory at disposal, which may affect the supply and demand of the products. The Hi-pro company production has been above per where the company has exceeded its production requirements. The optimal output of the company should be around 100% of the necessary goods and services. In the case of excess production, the company should consider its production process, where it should work on the demand and supply of the product in the market. The company should consider having research and development, which will enhance the analysis of the new data to establish the production capability of the company (Sanders, Elangeswaran & Wulfsberg, 2016). The company should also consider having lean inventory, which will help the company to decrease the holding costs of the stock. The company should work on a production capacity that does not exceed 100% in the USA.
In Argentina, the company is performing underperforming since it’s operating at 33% of the lower acceptable limits. The company production is addressing the needs of the market demands but fully since the firm is not working at its optimal levels. To address the problems and challenges of inadequate production, the company should develop a new approach that will be used to determine the demand and supply of the products in the industry. Research and development should be enhanced to identify why product adoption in Argentina is low (Sanders, Elangeswaran & Wulfsberg, 2016).
In New Zealand, the company production capacity of the company has been above the required limits of production. Production above the needed limits indicates excess inventories, which lead to high costs of handling the inventory and supply chain. The company should operate optimally to avoid such expenses. The firm should also consider new models of estimating demands to control the production capacity.
References
Sanders, A., Elangeswaran, C., & Wulfsberg, J. P. (2016). Industry 4.0 implies lean manufacturing: Research activities in industry 4.0 function as enablers for lean manufacturing. Journal of Industrial Engineering and Management (JIEM), 9(3), 811-833.