The Market
Jacobs Industries' only product is an industrial chemical that can be mixed with air to form a foam that is:
• Lightweight;
• Stable over a very wide range of temperatures;
• A very efficient thermal insulator;
• A very efficient acoustic insulator.
Jacobs sells its chemical to manufacturers of air conditioner retrofit kits. The manufacturers are all located in the region of Calopeia. They purchase the foam chemical as a substitute for competitors' products. If Jacobs cannot ship an order within 24 hours of receiving the order from the customer, the customer makes its purchase from a competitor without any loss of future demand.
The chemical is shipped in small plastic drums at a price of $1450 a piece. Demand for the
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Capacity costs are incurred as soon as the capacity expansion begins. It takes 90 days to complete a capacity expansion. Capacity cannot be retired.
Production in factories is carried out in batches, where each batch is an integer number of drums set by you. The cost to produce one batch equals $1500 plus the number of drums in the batch times $1000. For example, the cost to produce a batch of 10 drums is $1500 + (10)$1000 = $11,500.
The batch of finished drums is shipped from the factory to the warehouse as soon as production of the batch is completed. The drums can be shipped either by truck or one at a time by mail. One truck can carry 200 drums. One truck making a trip from the factory to the warehouse costs $15,000, regardless of how full the truck is. It costs $150 to mail one drum from the factory to the warehouse. Transportation times from the factory to the warehouse are 7 days for the truck or 1 day for mail. There is no practical limit to the number of drums a warehouse can hold.
Both the costs of producing the batch and then shipping it to the warehouse are incurred as soon as production of the batch starts. If there is insufficent cash to pay for the production and shipping of the batch, the factory will remain idle. Production of a batch is triggered when the finished goods inventory (both en route to the warehouse and in the warehouse) fall below the order point, which is set by
* Alternative B: Liquid Chemical Co. will continue making the containers, but it will outsource the maintenance to Packages, Inc.
Soren Chemical is new to developing a consumer brand (it partners with formulators to use private-label branding for its Kailan MW line). Therefore, they are relatively inexperienced with marketing consumer-oriented brands whereby they have to handle directly with wholesalers and also market to retailers, pool service professionals and consumers. This inexperience might have caused miscommunication between channels as seen when pool service professionals and specialty retailers had made inquires about Coracle but only 30% recalled receiving the Coracle material. Also 70% of them stated that Coracle
get a cost of $0.40 per ounce for the active ingredients. Finally, to calculate the cost of the active ingredients
Local procurement of materials provides an ease in production at the plant in Hangzhou. Costs are one area that attention is paid so that they can be kept within reason ensuring an affordable product. Throughout the process careful negotiations must be done to ensure there are adequate materials as well as manpower to fulfill the orders that have been placed by customers. The plant has the ability to produce a large amount of stock fans as well as special order merchandise. With specialty orders the process for procurement shift slightly because of the unique nature of the order and the variety of materials that may be used as well. With the procurement of the polymer done locally this also expedites the production process simply because logistics will not be an issue. The necessary machinery for manufacturing is onsite for quick manufacturing times that can quickly move into the production lines for assembly. Assembly leads way into storage for sales. Orders can be filled at the plant as well as shipped directly to the buyer both within China and internationally. Depending on the final destination of the merchandise there are multiple companies that are used to ensure the fastest shipping time to the buyer.
After 2000 Makrolon enjoyed much success by using different segments, ranging from roofing, surface coating, and medical technology to car windows. Their diversity and marketing tool of “Ingredient branding” paid off. Their new branding concept that required the component was used for high-class care products labeled with the Makrolon logo put Makrolon at a competitive advantage.
When dealing with several segments, a product can target one segment to specifically to exactly what
New issues manifest toward the bottlenecks and disturb production. There will be nothing to do while waiting to those bottleneck to complete its batch, so workers have been moved to others areas between batches to keep it operate. As the prevention, Alex dedicates one foreman at each constraint. one of the foreman discover the way to process more parts by mixing and matching orders based on priority and get efficiency by a full 10. While the relationship Alex and Julie also become better ….
In production, there are different types involved before a product brings revenue to the company. The costs involved incurred by Spyglass Inc. for the Batch 27A’s order of 500,000 units are:
If we run tempering machine at full capacity ( 200kg/hour) for two 8-hour shift (16 hours) then inventory will pile up between tempering and molding process at the rate of 60 kg/hour ( 200kg/hour of tempering (minus) 140kg/hour of molding) so for 16 hour it would be 16*60 =960 kg. Now if we use overtime in molding process ( beyond 16 hours) then molding machine will take further 6.85 hours ( 960/140) to process this WIP inventory. So by using overtime for 6.85 hours in molding, we can increase the capacity of combined tempering and molding process to 200 kg/hour.( In this way our total
While the purchasing department is busy working on the inventory other departments are using the sales projections to work on their staffing needs. They have done time studies to determine how many “pickers, and packers” are needed for their peak season. Their customer service department is also using these same sales projections to determine how many phone calls they will receive along with how many representatives they need. They are also meeting with shipping companies to negotiate cost and packing volumes. The shipments begin coming in June, and brought to their receiving area. Once everything is checked and made sure they have received what they should have received it in put into their warehouse. The warehouse is set up from slower movers to faster movers. The faster movers are set up closer to the conveyer lines to minimize the travel time for the pickers. In August they start staffing of the warehouse. While all departments are filling their staffing needs and beginning their training, the purchasing department is watching what costumes are selling early to see if there is
Shipping was done only in full trucks. No rules were there to determine optimal truck loads. Random decisions were taken due to poor visibility in the network. Monthly sales in first 20 day were around 16-32% and last 10 day was around 53%. As a result extra space was hired in case shipment exceeded depot capacity incurring more cost. Some placed extra inventory were getting accumulate and at the same time stock out were happening in some other place.
As the sections we divided in Supply Chain Design paper, we have five different sections of a restaurant. They are Suppliers, Inputs, Processes, Outputs and Customers. Now we will find out two different measurements for each section.
This part presents the data describing the product, the production process, the equipment, resource requirements, and machineries to be used together with the raw materials for the products, floor plan of the business, location, facilities, utility cost, production cost, and prices of the product.
While there is strong competition in the CFT industry, there is a weak threat of new entrants and an even lesser threat of substitute products. The market is comprised of major players who have the
Joy brand eager to restage the brand with new “no-spot” formula. This would reduce its COGS by $3 million.