Midas Gold Juice Company You are the purchasing director for Midas Gold Juice Com- The tin department makes lids with a current capacity of pany, a small Midwestern fruit-juice company that produces 80,000. The stamping department converts sheets of tin a line of premium, limited-run fruit juice (Slogan: Midas into the can bodies. The tin department uses 4,000 sheets Juice-You’ll be touched by the Gold). As one of your of tin per month, and each sheet produces 12 can bodies responsibilities, you review all requests for capital equip- The bodies and lids are assembled in the filing department ment that costs $10,000 or more. Recently, you have received where they are filled and sealed. The design capacity of the a request from the production department to purchase an filling department is 50,000 cans per month additional stamping machine. This machine will double the capacity of the tin shop from its current level of 80,00lsestions (design capacity) to 160,000 lids. Every can lids. 1. Production managers also claim that the new machine will balance the line and improv eds two lids. 1. What is your response to the request for the new machine? Identify any concerns that you have. (Hint: Think about the process and its design capacities when answering this question.) e output dramatically 2. In reviewing the request, you decide to examine the production process. You find a fairly straightforward p cess that starts by squeezing the juice from the fruit and storing it in tanks. On average, these tanks hold 4,000 gal- lons available at any time. Under ideal circumstances, this amount fills 40,000 cans per month. Hints 1. Make sure that you express all the capacity in the same units. 2. The can-making process has two stages. In the first, the cans are made in two steps involving two departments. You may want to use the process mapping and analysis techniques described in the supplement to this chapter