analysis and interim report

Analysis and Interim ReportAnalysis and Interim Report

Valeria BalsecaValeria BalsecaSales & Marketing Manager

Claudia PradaClaudia PradaMM Manager

Jhonattan PoloJhonattan PoloCEO

1. Strategies of Companies1. Strategies of Companies

Company DD Company EE Company FF

PricePrice Avg Price Decreasing (constant rate)

Avg Price Constant(oscillating variations)

Avg Price Decreasing (constant rate)

MarginMargin Increasing(-29% to 21%)

Decreasing(1% to -4%)

Increasing (-47% to -3%)

MarketingMarketing No Marketing Strategy

$0

Low Marketing investment

$865

High Marketing investment in Q4, but not representative$4170

InventoryInventory Low Inventory Levels (Avg 199,084 un/day)

Medium Inv. levels(Avg 205,109 un/day)

High Inventory levels(Avg 228,691 un/day)

ProductionProduction No new product lines 2 New Product lines of 500g (Blueberry & Original)

2 New Product lines of 500g (Strawberry & Mixed)

ProcurementProcurement High order quantities (>200,000KG)

High order quantities (>200,000KG)

Low order quantities (>200,000KG)

InvestmentsInvestments None Reduce set up time ($200,000: from 12hr to 7.5hr approx.)

None

2. Profit and revenues2. Profit and revenues

3. Investment for reducing setup time3. Investment for reducing setup time

5. Investment for increasing capacity5. Investment for increasing capacity

No company invested for increasing capacity

5. Sold quantities and revenue – DC 105. Sold quantities and revenue – DC 10

Highest: Company DD


Highest: Company DD


Highest in Units: Company EE

Highest in Revenue: Company FF

6. % of Sold quantities of new products6. % of Sold quantities of new products

1 Kg Blueberry Muesli 2181361 Kg Mixed Fruit Muesli 1184441 Kg Nut Muesli 2274491 Kg Original Muesli 39932

1 Kg Raisin Muesli 1092061 Kg Strawberry Muesli 118689500 g Blueberry Muesli 87172500 g Original Muesli 150000Grand Total 1069028

6. % of Sold quantities of new products6. % of Sold quantities of new products

1 Kg Blueberry Muesli 1054551 Kg Mixed Fruit Muesli 940001 Kg Nut Muesli 1578111 Kg Original Muesli 72085

1 Kg Raisin Muesli 2520631 Kg Strawberry Muesli 122000500 g Mixed Fruit Muesli 133621500 g Strawberry Muesli 860Grand Total 937895

7. % of revenue from new products7. % of revenue from new products

1 Kg Blueberry Muesli 885,452.66$ 1 Kg Mixed Fruit Muesli 618,646.33$ 1 Kg Nut Muesli 1,176,048.93$ 1 Kg Original Muesli 154,035.71$

1 Kg Raisin Muesli 479,948.22$ 1 Kg Strawberry Muesli 660,463.83$ 500 g Blueberry Muesli 322,878.38$ 500 g Original Muesli 398,688.16$ Grand Total 4,696,162.22$

7. % of revenue from new products7. % of revenue from new products

1 Kg Blueberry Muesli 596,277.07$ 1 Kg Mixed Fruit Muesli 466,220.20$ 1 Kg Nut Muesli 631,635.52$ 1 Kg Original Muesli 312,410.70$

1 Kg Raisin Muesli 1,093,085.18$ 1 Kg Strawberry Muesli 601,734.20$ 500 g Mixed Fruit Muesli 636,182.48$ 500 g Strawberry Muesli 5,762.00$ Grand Total 4,343,307.35$

8. % of Revenue of each Distribution Channel 8. % of Revenue of each Distribution Channel

9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F01 1 Kg Nut Muesli

Average Price DC 12DD 4.60$ EE 3.82$ FF 4.05$


9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F02 1 Kg Blueberry Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F03 1 Kg Strawberry Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F04 1 Kg Raisin Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F05 1 Kg Original Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F06 1 Kg Mixed Fruit Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F02 500 Kg Blueberry Muesli

Average Price DC 12EE 3.85$


9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F03 500 Kg Strawberry Muesli

Average Price DC 14FF 6.70$

9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F05 500 Kg Original Muesli



9. Sold quantities and prices of each product 9. Sold quantities and prices of each product FF-F06 500 Kg Mixed Fruit Muesli



10. Prices changes of each product 10. Prices changes of each product

FF-F01 1 Kg Nut Muesli

COMPANY DD EE FFDC 10 5.26$ 5.65$ 5.00$ DC 12 5.39$ 5.29$ 5.07$ DC 14 5.79$ 5.32$ 5.21$


FF-F02 1 Kg Blueberry Muesli


10. Prices changes of each product 10. Prices changes of each product FF-F03 1 Kg Strawberry Muesli



FF-F04 1 Kg Raisin Muesli



FF-F05 1 Kg Original Muesli



FF-F06 1 Kg Mixed Fruit Muesli


11. Marketing Expense11. Marketing Expense

12. Production12. Production

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

DD EE FF DD EE FF DD EE FF DD EE FF

1 2 3 4F06 40,000 92,813 23,000 83,000 44,092 71,000 0 0 40,000 31,500 0 122,000

F05 40,000 25,000 23,000 66,500 100,000 57,000 141,750 60,000 30,000 130,250 50,000 47,000

F04 30,000 50,000 28,000 78,000 44,573 83,000 31,500 24,491 92,000 0 0 66,000

F03 30,000 25,000 29,000 46,500 46,139 63,000 47,250 57,831 30,000 31,500 0 21,000

F02 30,000 25,000 39,000 78,000 37,172 63,000 105,000 200,000 40,000 96,000 50,000 0

F01 60,000 86,687 33,000 51,500 60,000 51,000 144,500 103,578 50,000 115,500 0 42,000

12. Daily Production (continued)12. Daily Production (continued)25000225002000017500150001250010000750050002500

0

25000225002000017500150001250010000750050002500

0

25000225002000017500150001250010000750050002500

0

37% 64% 75% 64%

48% 53% 71% 16%

28% 62% 45% 47%

13. Fixed costs (daily) for company FF13. Fixed costs (daily) for company FF

14. Production Capacity14. Production Capacity

• Planned production Capacity– 21,000 units per day

• Average Productivity– 75%

• Production capacity allocation basis– 15,750 units per day

• Allocated fixed costs per unit– €1.71

14. Production Capacity (continued)14. Production Capacity (continued)

15. Raw Materials Cost15. Raw Materials Cost

• Average raw material cost per company (from operations table):

R01 R02 R03 R04 R05 R06 P01 P02 P03 P04DD 1.75€ 3.81€ 3.67€ 1.19€ 0.99€ 0.83€ 0.29€ 0.12€ 0.21€ 0.09€ EE 1.78€ 4.20€ 4.11€ 1.07€ 1.01€ 0.88€ 0.28€ 0.12€ 0.21€ 0.09€ FF 1.79€ 3.85€ 3.96€ 1.25€ 1.00€ 0.83€ 0.28€ 0.12€ 0.21€ 0.09€

15. BOM (end of simulation)15. BOM (end of simulation)R01 R02 R03 R04 R05 R06 P01 P02 P03 P04 RM Cost

DD F01 0.2 0 0 0 0.4 0.4 1 1 0 0 € 1.49 DD F02 0 0.2 0 0 0.4 0.4 1 1 0 0 € 1.90 DD F03 0 0 0.2 0 0.4 0.4 1 1 0 0 € 1.87 DD F04 0 0 0 0.2 0.4 0.4 1 1 0 0 € 1.37 DD F05 0 0 0 0 0.5 0.5 1 1 0 0 € 1.32 DD F06 0.1 0.05 0.05 0.1 0.35 0.35 1 1 0 0 € 1.71

R01 R02 R03 R04 R05 R06 P01 P02 P03 P04 RM CostEE F01 0.2 0 0 0 0.4 0.4 1 1 0 0 € 1.52 EE F02 0 0.2 0 0 0.4 0.4 1 1 0 0 € 2.00 EE F03 0 0 0.2 0 0.4 0.4 1 1 0 0 € 1.98 EE F04 0 0 0 0.2 0.4 0.4 1 1 0 0 € 1.38 EE F05 0 0 0 0 0.2 0.8 1 1 0 0 € 1.31 EE F06 0.1 0.05 0.05 0.1 0.35 0.35 1 1 0 0 € 1.77

R01 R02 R03 R04 R05 R06 P01 P02 P03 P04 RM CostFF F01 0.2 0 0 0 0.2 0.6 1 1 0 0 € 1.46 FF F02 0 0.2 0 0 0.2 0.6 1 1 0 0 € 1.87 FF F03 0 0 0.1 0 0.1 0.3 0 0 1 1 € 1.05 FF F04 0 0 0 0.2 0.4 0.4 1 1 0 0 € 1.39 FF F05 0 0 0 0 0.2 0.8 1 1 0 0 € 1.27 FF F06 0.14 0.01 0.01 0.14 0.1 0.1 0 0 1 1 € 0.99

15. Planned Manufacturing Cost15. Planned Manufacturing Cost

• Company FF

15. Planned Manufacturing Costs15. Planned Manufacturing CostsDC10 DC12 DC14

DD F01 4.30€ 4.50€ 5.00€ DD F02 5.25€ 5.25€ 5.25€ DD F03 5.20€ 4.50€ 5.50€ DD F04 4.00€ 4.25€ 4.50€ DD F05 4.20€ 4.40€ 4.75€ DD F06 4.80€ 5.00€ 5.50€

DC10 DC12 DC14EE F01 4.85€ 4.09€ 4.09€ EE F02 2.28€ 2.35€ 2.33€ EE F03 5.00€ 5.00€ 5.00€ EE F04 4.01€ 4.01€ 4.01€ EE F05 2.28€ 2.00€ 2.00€ EE F06 4.84€ 4.70€ 4.84€

DC10 DC12 DC14FF F01 3.20€ 3.30€ 3.40€ FF F02 5.00€ 5.10€ 5.00€ FF F03 4.00€ 4.00€ 4.00€ FF F04 3.90€ 4.00€ 4.00€ FF F05 3.00€ 3.25€ 3.25€ FF F06 4.00€ 4.00€ 4.00€

RM Cost Planned CostDD F01 € 1.49 3.20€ DD F02 € 1.90 3.61€ DD F03 € 1.87 3.58€ DD F04 € 1.37 3.08€ DD F05 € 1.32 3.03€ DD F06 € 1.71 3.42€

RM Cost Planned CostEE F01 € 1.52 3.23€ EE F02 € 2.00 3.71€ EE F03 € 1.98 3.69€ EE F04 € 1.38 3.09€ EE F05 € 1.31 3.02€ EE F06 € 1.77 3.48€

RM Cost Planned CostFF F01 € 1.46 3.17€ FF F02 € 1.87 3.58€ FF F03 € 1.05 2.76€ FF F04 € 1.39 3.10€ FF F05 € 1.27 2.98€ FF F06 € 0.99 2.70€

16. Purchase16. Purchase

• Vendors List (Company FF)

16. Purchase (table ekpo)16. Purchase (table ekpo)

16. Purchase16. Purchase

17. Inventory Changes17. Inventory Changes

F01 NutsF02 BlueberriesF03 StrawberriesF04 RaisinsF05 OriginalF06 Mixed Fruits

18. Days out of stock18. Days out of stock

0

10

20

30

1 2 3 4

Days without Inventory - F01

DD EE FF

0

10

20

30

1 2 3 4


DD EE FF

0

10

20

30

1 2 3 4


DD EE FF

0

10

20

30

1 2 3 4


DD EE FF

0

10

20

30

1 2 3 4


DD EE FF

0

10

20

30

1 2 3 4


DD EE FF

F01 NutsF02 BlueberriesF03 StrawberriesF04 RaisinsF05 OriginalF06 Mixed Fruits

COMPANY TOTALDD 148EE 185FF 119

19. Days without Production19. Days without Production

0

5

10

15

20

25

30

1 2 3 4

Days without Production

DD EE FF

20. Production Utilization Rate20. Production Utilization Rate

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

1 2 3 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

1 2 3 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

1 2 3 4

100%90%80%70%60%50%40%30%20%10%0%

100%90%80%70%60%50%40%30%20%10%0%

100%90%80%70%60%50%40%30%20%10%0%

21. Prices and profit correlation.21. Prices and profit correlation.Company FFCompany FF

Correlations:1) Prices and profit2) Price and revenue3) Inventory and profit4) Inventory and revenue5) Profit/revenue and marketing expenses6) Profit/revenue and utilization rate of production7) Profit/revenue and investmentWhat factor do you think is more critical?

21. Prices and profit correlation.21. Prices and profit correlation.Company EECompany EE


21. Prices and profit correlation.21. Prices and profit correlation.Company DDCompany DD


21. Prices and profit correlation.21. Prices and profit correlation.Company DD, EE, FFCompany DD, EE, FF


22. Lessons Learned22. Lessons Learned• Consider not only raw materials cost when making decisions about setting up

product prices. Take into account fixed costs!!!• Produce in bigger lot sizes, as there are costs and times associated to changing

products.• Track of the inventory at all times and don’t run out of stock. Every day there can

be significant changes and this could be determinant in the winning/loosing of the simulation.

– It takes around 2 days to get raw materials once they are ordered– There is also setup time and production time

• Marketing does not seem to have impact on sales. If the company adopted a marketing strategy, it is important to determine the representative amount of marketing for each area an product to get an effect in sales.

• The decision of changing prices should be well analyzed, based on the available inventory and the sales.

• Prioritize production keeping inventory levels of products that have high sales• In this simulation, sales where not influenced by marketing, and it was not very

sensitive to price changes: even though we reduced prices to push our sales, our markets did not respond as expected

analysis and interim report

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