Scenario 1: Expanding a Food Truck Business
A food truck owner operates a popular lunch business near several office buildings. The truck currently serves about 120 meals each day, and customers often leave when the line becomes too long. The owner believes the business could sell at least 50 additional meals each day.
The truck has one grill, refrigeration space for its current inventory, and two employees who prepare food and serve customers. The owner has saved $18,000 for the business. New cooking and refrigeration equipment would cost about $17,000. Hiring an additional experienced employee would cost about $18,000 in wages over the next several months.
At the same time, a drought has reduced harvests at several farms that supply the truck. Some ingredients have become more expensive and are not always available in the quantities the owner previously purchased. The owner is considering purchasing new equipment, hiring another employee, or changing the menu.
Scenario 2: Increasing Production of Medical Equipment
A manufacturer produces specialized medical equipment used by hospitals. Orders have increased substantially, and company leaders want to produce more equipment. The company owns a factory with several advanced machines, some of which currently operate for only part of each workday.
Operating and maintaining the machines requires specialized technical training. The company currently employs 35 trained technicians and has openings for 12 more. After advertising the positions for several months, only three qualified applicants have applied.
Company leaders are considering several options. They could increase wages to recruit experienced technicians, establish a six-month paid training program for new employees, or purchase newer automated equipment. The automated equipment would cost several million dollars and would require fewer technicians once installed. Hospitals are currently waiting several months for the company to fill orders.
Scenario 3: A Community’s Limited Water Supply
A growing community is experiencing its third year of unusually low rainfall. Reservoirs that supply the area are at 45 percent of their normal capacity, and officials expect below-normal water supplies to continue for at least another year.
The water supply serves approximately 150,000 residents as well as farms, restaurants, manufacturers, and construction projects. Local farms use irrigation to grow crops and employ seasonal workers. A food-processing plant that employs 600 residents uses water throughout its operations. Several new housing developments and businesses are also scheduled for construction during the next two years.
Community leaders are considering several responses. They could establish different limits for different uses, invest in infrastructure to increase the available water supply, or delay approval of some new development. Residents, farmers, business owners, developers, and local officials have shared various views on the best approach for the community.
