Operations · Live week

Optimal operating point

Recommended output

12,480 units

Where MC = MR

Contribution at point

£84.2k

+6.1% vs last week

Staff utilisation

91%

Target band 88–94%

Inventory days cover

6.4 days

Below 8-day policy

Marginal cost = marginal revenue

Intersection marks the firm’s optimal operating point for this week’s cost and demand schedule.

Marginal cost Marginal revenue Operating point
£ / unit Output (units) £12 £9 £6 £3 £0 0 6k 12k 18k Q* 12,480 · £6.74

Staffing levels

Aligned to Q*
  • Production line 42 / 46 FTE
  • Packing & dispatch 18 / 20 FTE
  • Quality & compliance 7 / 8 FTE
  • Agency cover (peak) 4 planned

Recommended roster holds contribution while keeping overtime below 6% of hours.

Inventory management

Stock positioned for the operating-point run rate — not max warehouse fill.

SKU On hand Days cover Reorder Status
NB-FLOUR-25 184 bags 9.2 120 Healthy
NB-YEAST-10 46 units 5.1 80 Reorder
NB-OIL-20L 62 drums 7.8 40 Healthy
NB-PACK-A4 1,120 4.3 2,000 Critical
NB-SUGAR-25 210 bags 11.0 90 Healthy

This week’s steer

  1. Hold output at 12.5k Pushing past Q* lifts MC faster than MR — estimated £3.4k contribution loss.
  2. Restore pack SKU cover Critical days cover on NB-PACK-A4 constrains the operating point before labour does.
  3. Keep line staffing at 91% One fewer agency shift still clears the week if pack stock arrives Wednesday.