Application of the minimum cost criteria for the determination of the optimal plant size in a coffee company in Antioquia

Abstract

This article aims to propose the minimum cost criterion for the determination of the optimum plant size in the company "Coffee of Tomorrow." The goal is to identify a production scale that allows the minimization of investor costs, subject to the satisfaction of future demand for two production lines of roasted and ground packaged coffee. In this way, a competitive criterion is presented for a producer who wishes to maximize its rentability in a context of imperfect competition where he cannot compete with prices. For companies, it is essential to have this concept fully appropriated, since having a criterion to determine an optimal plant size will be very important to increase organizational efficiency.