The main problem that the Bonkers Chocolate Factory is facing right now is whether to purchase additional equipment for the chocolate plant and what type of equipment to purchase. The Engineering Vice President was proposing implementing a new in-house conching technology and the Manufacturing Vice President was proposing that the company buy a fifth conventional conch machine. The recommendation is that the Bonkers Chocolate Factory implements the new in-house conching technology because the long term benefits far outweigh the short term losses.
Bonkers Chocolate Factory uses a conching process that is critical to making all of their chocolate and this process has frequent capacity problems. Two recommendations were made as how to solve this problem, implement a new in-house conching technology that was developed or purchase a fifth conventional conch machine. The Vice Presidents of the Bonkers Chocolate Factory had a discussion to decide on which decision would be best for the company and not everyone was in agreement;
The Engineering Vice President recommended the implementation of the new in-house conching technology, The Manufacturing Vice President recommended purchasing a fifth identical machine to the ones that they already have, The Operations Vice President was in favor of purchasing a fifth identical machine and so was The Sales Vice President who wanted to keep using the same process that they had been for the past 80 years, and The Marketing Vice President also wanted to keep using the conventional conch technology.
While the conventional conch technology will only cost $3 million to implement and implementing the new in-house conch technology will cost $4 million, the benefits of implementing the new in-house conch technology greatly outweigh the benefits of staying with the conventional conch technology for many reasons.