Question

Your competitive intelligence team is predicting that the digby company will invest in adding capacity to their deal product this year. assume digby's product deal invests in increasing its capacity by 10% this year. because of this new information, your company anticipates all other products in the core segment will increase their capacity by the same amount. how much can the industry produce in the core segment the next year? consider only products primarily in the core segment last year. ignore current inventories. figures in thousands (000).

Answer 1

Question: Your Competitive Intelligence team is predicting that the Digby Company will invest in adding cap...

Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Dug product this year. Assume Digby's product Dug invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

ProductSegmentCapacity Next RoundDugCore1200DuneCore1450BeetleCore1040BatCore1050NewCore100AdamCore1200

If you take these numbers and add the 10% you get 6,644 for next year's capacity. However, the choices on the homework are not one of those, they are 8,585; 7385; 9564; 4840; 4025; 13288; and 8364 == This makes no sense.

Answer 2

Answer: Option containing 14,311

Explanation:

Step 1:

From the courier or inquirer report, Take all the products under the Core segment.

Step 2:

Take the sum of the total capacity of these products.

Let's call it C.

C = 6505

Step 3:

New capacity (NC) = C * 1.1 i.e. we increase the capacity by 10%.

NC = 6505*1.1 = 7156

Step 4:

Total quantities that we can produce = 2*NC = 2*7156 = 14311