Toffee Inc - MSOM - Case Study

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Temple University *

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3103

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Economics

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Feb 20, 2024

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docx

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4

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Toffee Inc Case Study Nicholas Fazio & Anna Sadowski 10/24/2023 Executive Summary Similar to one of the previous companies we studied, Hershey, Toffee Inc is another renowned chocolate producer. They use a plethora of high-grade materials in order to perfect the taste, consistency, and sustainability of their chocolate bar products. Toffee Inc has a similar goal to most other companies, to maximize profits by paying the lowest total cost possible. This goal can be met by effectively comparing the total costs of each chocolate ingredient vendor option based upon the quantity they are willing to sell and the different discount prices they have; then with the data, the lowest total cost vendor will be selected for each ingredient. This will ensure the maximum possible profit intake and help determine the purchase quantity and time in- between orders. Situational Analysis Year 6 Sales Growth Forecast:
Discount Price Levels Assessment: To get demand for ingredients in grams multiply the grams per ingredient by the total number of bars 34,500,400. To get demand in kilograms divide the demand by 1,000. Demand for each ingredient: Dark Chocolate: 269,103,120 kg Cocoa butter: 213,902,480 kg Cocoa Powder: 175,952,040 kg Dry fruits/nuts: 138,001,600 kg
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