- Description Case Studies Are Used To Enable You To Ply New Concepts Use The Sols You Have Mastered And Improve Your Tech 1 (40.37 KiB) Viewed 93 times
Description Case studies are used to enable you to ply new concepts use the sols you have mastered and improve your technical skils you have attained through the individual case studies you will discover for yourse the usefulness of quantitative problem solving methods, how to apply them in practice and their benefit to organizational decision-makers In this case study you will act as a consultant for a
company that crushes tower seeds to produce high quality refined sunflower oil for sale in the wholesale market. The
company is looking for you to make a recommendation on the optimal blend of raw materiais required for its best production cycle You will be aber of die analysis tools including time senes forecasting linear programming and cost profit volume analysis to make the recommendation and provide analysis on the profitability of the
company You will be required to submit a written report to management and to include the spreadsheet models you used to generate price forecasts, optimize the raw material and a perform the break even analysis. Al analysis should be done using Excel and the various models should be implemented on separate woestets or in separate workbooks Scenario Tournesol Canada is a producers of high quality sunflower oil. The
company buysa sarflower seeds directly from large agricultural companies, and refines the seeds into sunflower oises in the wholesale market As a ty product the
company is produces sunflower mas a patte made from this of crushed uniwerde) that it into the mariatas bate product for animal feed. The
company has a maximum input capacity of 150 short tons of raw sunflones seeds every day (or 54750 short tons per years Of course the
company cannot run at full capacity every day as it is required to shut down or redute capacity for maintenance periods every year, and it experiences the occasional mechanical problem. The facility is expected to run at 90% capacity over the year for an average 150 x 90% 135 short ons per day Tournesol is planning to purchase its supply of raw sunflower seeds from three primary growers Supplier A Supplier Band Supplier C. Purchase prices will not set until the orders are actually placed to Tomasol wihave to forecast purchase prices for the raw material and sales prices for the refined sunflower oil and mash The contract is written such that TourSol is only required to commit to 70% of total capacity up front. Any amounts over that can be purchased only as required for the same price Historical prices for the last 15 years are in the table below (note that year 15 is the most Current year) R +
11:44 courses.yorkvilleu.ca Tourne Sol is planning to purchase its supply of raw sunflower seeds from three primary growers, Supplier A. Supplier B, and Supplier C. Purchase prices will not set until the orders are actually placed so Tournesol will have to forecast purchase prices for the raw material and sales prices for the refined sunflower oil and mash. The contract is written such that Tournesol is only required to commit to 70% of total capacity up front. Any amounts over that can be purchased only as required for the same price. Historical prices for the last 15 years are in the table below (note that year 15 is the most current year) Historical Price Data Marketing Seed Oil Mash Average Average Average Price Index Price Index Price Index $/short ton S/short ton S/short ton 127.7 317.8 63 Year 1 2 192.4 465 87 الا 242 662.2 105 4 242 668.2 111 5 274 791.3 124 6 242 732 108 7 290 951 134 8 347.2 153 9 436 1123 1297.3 1312 193 10 422.8 187 11 466 1416 193 12 582 1664 247 13 508 1317.4 242 14 428 11924 197
11:44 courses.yorkvilleu.ca The oleic acid and iodine content for the sunflower seeds from the three suppliers is given in the table below. Supplier Oleic Acid lodine A 72% 0.95% B 82% 0.85% с 0.72% 65% For all three suppliers, it is expected that the average yield of oil from the seeds is 30%. There is no net loss of material, so the yield of mash from the same supply is expected to be 70%. Because the oleic acid and iodine content varies across the three suppliers, so does the price. It is expected that the cost of supply from the suppliers will be a percentage of the market average price of seeds. Supplier Cost as % of Average Market Price of Seed A 85% B 100% 90% C The
company faces an additional variable production cost of $10/short ton and an estimated fixed cost of $1,750,000 over the upcoming production period. The
company is asking you to provide a recommendation on the amount of raw material it should purchase from each supplier to minimize its cost of feedstock. Management is also looking for an analysis on the profitability of the
company in the next production cycle.