Bio Pharma

1005 Words5 Pages
Bio Pharma
Case Analysis

Question 1
How should BioPharma have used its production network in 2009? Should any of the plants have been idled? What is the annual cost of your proposal, including import duties?

As Landgraf’s objective is to design a more cost-effective network (cost minimization problem subject to various capacity constraints), the following production network in 2009 should have been used by BioPharma:
*All numbers below are in millions

*Total Transportation Cost=SUMPRODUCT of each plant’s Highcal production with corresponding transportation costs (TABLE 6-23) plus the SUMPRODUCT of each plant’s Relax production with corresponding transportation costs (TABLE 6-23)

According to the solver table
…show more content…
After that, we will solve the excel model again to get the optimal production network.

Question 6
What other factors should be accounted for when making your recommendations?

While making our recommendation to Phil, there are other risk factors we need to consider with our recommendation.
Since BioPharma is utilizing the plant production in Brazil, India, Mexico and U.S. and idling plants in Japan and Germany for Relax products, BioPharma will face additional disruption risks, such as natural disaster. For instance, if there is a natural disaster happened in the Mexico plant, which accounts for 29% of the total production now, there will be a large impact on BioPharma’s production output.
Secondly, supply delays can also be a risk. It is caused by high capacity utilization and poor yield of the supply source. Currently, BioPharma has more productions in Brazil, India and Mexico, which have less advanced technology than in Japan and Germany, which have higher environmental handling ability and production yields. Production in plants with outdated technology will have higher potential to cause delay or different production issues. Moreover, these supply sources are producing at their
Get Access