Factory Bikes and Scooters PPC

Factory production possibility curve

Harbor Works uses this production possibility curve to discuss its weekly assembly trade-off. Bikes and scooters share workers, paint booths, components and final inspection stations. The frontier shows all efficient combinations that can be produced with the current factory setup. The dealer order mix is on the curve, while the parts-shortage point falls inside it because capacity is waiting for components. The graph is not a sales forecast; it is a compact way to separate demand choices from the physical limits of production and to show the opportunity cost of shifting the mix. It gives teams a concrete starting point for reviewing assumptions, data quality and next steps together.

Type Graphique économiqueMoteur econ-ppfMis à jour 24/09/2026

La demande

“Create a production possibility curve for Harbor Works with capacity for 500 bikes or 260 scooters per week, showing a dealer order mix of 320 bikes and 115 scooters and a parts-shortage point of 220 bikes and 80 scooters.”

Essayez ensuiteAdd a point for 400 bikes and 55 scooters.Change the scooter maximum to 300.

Ce que contient ce dessin

Comprenez les décisions qui le sous-tendent.

01Confirm capacity

Use labour and assembly stations.

02Meet demand

Select a feasible dealer mix.

03Resolve shortages

Move an interior point toward the frontier.

Use when products share production labour and equipment.

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FAQ

Questions fréquentes

What is opportunity cost on this curve?

It is the scooters given up when the factory produces additional bikes, or the reverse.

What causes the curve to shift?

Extra stations, workers, components or better processes can expand weekly capacity.

Can an order mix be outside the curve?

Yes, but it is not feasible without changing capacity or extending the time period.