Bergerac case report

1821 Words May 3rd, 2015 8 Pages
FINANCIAL AND ADVANCED CAPITAL INVESTMENT ANALYSIS – IEM 5503

BERGARAC SYSTEMS CASE REPORT

Prepared By
DHINESH SELVARAJ
11508062

Executive Summary

This report is a result of an analysis of the case which has been analyzed and reported by Mr. Bob McCarthy, Director of planning who has collected some serious information about the firm Genie Tech. Genie Tech is one of the current suppliers who supply plastic molded parts to Bergerac Systems. Off late the supply of these plastic parts is being a real problem for Bergerac Systems. The reason for the shortages in supply by both Genie Tech and Ellsinore are mentioned as the financial crisis of 2008, both the suppliers are also facing a very competitive and fragmented market with
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Build Analysis
This part of the analysis assumes that Bergerac systems chooses to buy four machines which are of new technology and saves material cost and reduces the cycle time. It is stated the annual growth varies in the triangular distribution and hence its assumed that the demand for the parts also varies in the similar fashion while analyzing it is known that the production capacity is fixed and it is not going to vary unless and until a new machine is added, hence whenever the demand increases the current production rate a machine is added and this means the income statement has to incorporate the cost of buying, installing the new machine(s) added.
In the year 2013 there might be a strike (Probability=50%) for .5 to 3 months this reduces the labor cost and the running of the plant. It is assumed that this strike would never affect the sales of the cartridges.
Secondly we also have the new product Omnivue mobile, which is expected to launch in 2013. Proper study of the case does not reveal any info about the weight, price, of this cartridge hence the only assumption which is made is that when this cartridge is introduced in the market the

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