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  4. Buying / Selling Factory Capacity in MikesBikes Introduction

Buying / Selling Factory Capacity in MikesBikes Introduction

Increasing your company’s Factory Capacity is done through the Factory Capacity menu (under the Operations top-menu, available from year 3 of the simulation).

Buying or Selling Factory Capacity

Click on either “Buy” or “Sell” and then enter the number of Standard Capacity Units (SCU) you require:

One SCU will cost you $200. So if you purchase 1,000 additional SCU this will cost you $200,000.

Note: Each year companies can double their current Factory Capacity provided you have enough cash available to pay for it.

This means your maximum capacity purchase each year may be limited by how much cash you have at the start of the year. For instance, if you have $1m in cash, then you will only be able to purchase an additional 5000 SCU of capacity.

If you need to purchase more capacity than the simulation allows, then consider raising long term debt or issuing more equity to increase your available cash.

How much SCU do I need?

When your production requirements exceed available Factory Capacity you will be notified on the Pricing & Production screen and on the Factory Capacity screen. The message will specify the quantity of SCU required. Example:

Calculating Required SCU Manually

A manual calculation can also be made using the following formula:

Total SCU required = Planned Production x SCU required per unit / Efficiency%

  • Road Bikes require 1 SCU per unit to produce
  • Mountain Bikes require 0.50 SCU per unit to produce
  • Kids Bikes require 0.25 SCU per unit to produce

Note: You can reduce the amount of wastage in your factory by investing more in Efficiency.

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