Around early 1990, the company reached a stage where they need to deeply analyze the European Plant Network that had been producing its hypodermic product. The purpose behind this intended investigation was to find out the total production capacity to be provided, the number and location of plants that could withstand this capacity and which products had to be allocated to the various plants, across which countries. For many years the company had the freedom of excess capacity but now was the time when they had to make a concrete decision since the recent sales forecast indicated an unusual shortage. The case brings the entire decision on to the students, for them to analyze the company’s historical events of having experienced excessive capacity and costs and thus leads to a question for the future too.
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