Case : Company A manufactures beer bottles and has only 1 customer B. A sells 50 lakhs bottles per annum. B might raise the demand to 1 crore “after a month” in case IPL takes place this year. A has to decide “today” if it has to go for production of 1 crore bottles. Options for increased production are: (i) Produce as much as A can and get remaining from 3rd party. (ii) Buy a new machine which could produce 1 crore bottles. There is a probability that the new machine might be defective

Question

Accepted Answer

Company A has to decide whether to produce 1 crore beer bottles for customer B in case of increased demand due to IPL.

Consider the cost of producing extra bottles versus the cost of buying from a third party.
Evaluate the risk of buying a new machine that may be defective.
Assess the probability of increased demand from customer B due to IPL.
Analyze the potential impact on profits and market share.
Consider the long-term implications of the decision on the company's growth and sustainability.

Top Auctus Advisors Intern interview questions & answers

Popular interview questions of Intern

Top HR questions asked in Auctus Advisors Intern