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In agribusiness, particularly in a fruit processing unit, frequent raw material shortages during peak season indicate a misalignment between production capacity and resource availability. The Production Possibility Curve (PPC) provides a useful conceptual framework to address this issue. The PPC illustrates the maximum combination of two goods or outputs that can be produced with available resources and technology, highlighting opportunity costs and efficiency. In the context of a fruit processing unit, the two “goods” could be considered as different products or as the quantity of processed output versus the inventory of raw materials, depending on the focus of planning. Currently, the unit’s frequent shortages suggest that the production plan lies inside the PPC rather than on it, meaning resources are underutilized or poorly allocated. To redesign planning using PPC, the first step is to assess the maximum potential output given current technology, workforce, machinery, and raw material availability. By establishing the production frontier, management can visualize the trade-offs between producing different processed fruit products and maintaining inventory buffers to absorb supply fluctuations. Next, the unit should incorporate the concept of resource __________ ________ _____ ______ __________ _________ _____ ______ _________ _____.
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