Bakery Expansion Strategy
A large-scale bakery currently operates with 10 industrial ovens and 20 bakers, producing 5,000 loaves of bread per day. Management is considering a massive expansion by tripling all inputs to 30 ovens and 60 bakers. A consultant presents data from a past, smaller expansion where the bakery doubled its inputs from 5 ovens and 10 bakers to its current size of 10 ovens and 20 bakers. In that previous expansion, output increased from 3,000 to 5,000 loaves. Analyze the production data from the past expansion. Based on your analysis, what is the likely outcome of the proposed tripling of inputs, and what advice would you give to the management regarding their production expectations?
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