BioPharma Case Study

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FALSE:: ERROR: UNSUPPORTED ENCODING

It doesn’t appear this improves the solution shown in question 1. The plants that are at capacity in part 1 are Brazil, India, Mexico, and the U.S.; adding a million kilograms of capacity to those plants does not result in a lower overall cost for the entire supply chain.

4. How are your recommendations affected by the reduction of duties?

A reduction in duties to 0% across the board results in the following costs:
$38.25Total Transportation Cost (millions)
$1,325.40Total Production Cost (millions)
$0.00Total Tariffs (millions)
$1,363,650,824TOTAL COST

The solution matrix is far less sparse; virtually every market receives imports from every other market with the exception of Mexico and Asia

without Japan. Production increases in Germany and Japan at the expense of India, Mexico, and the U.S.

Highcal Production
Plant
Latin America
Europe
Asia w/o Japan
Japan
Mexico
U.S.
Brazil
1.20
2.28
0.62
1.20
0.00
4.90
Germany
1.52
2.90
1.23
1.52
0.95
2.98
India
1.12
2.50
.83
1.12
0.55
2.58
Japan
0.53
1.91

0.25
0.53
0.00
1.99
Mexico
1.52
2.90
1.23
1.52
0.95
2.98
U.S.
1.12
2.50
0.83
1.12
0.55
2.58
Total
7
15
5
7
3
18

Relax Production
Plant
Latin America
Europe
Asia w/o Japan
Japan
Mexico
U.S.
Brazil

1.20
1.48
0.00
1.48
0.00
3.65
Germany
1.52
2.46
0.95
1.66
0.95
3.03
India
1.12
2.06
0.55
1.26
0.55
2.63
Japan
0.53
1.47
0.00
0.67
0.00
2.04
Mexico
1.52
2.46
0.95
1.66
0.95
3.03
U.S.
1.12
2.06
0.55
1.26
0.55
2.63
Total
7
12
3
8
3
17

Total Plant Output
Plant
Total
Brazil
18.00
Germany
21.67
India
16.87
Japan
9.93
Mexico
21.67
U.S.
16.87

5. The analysis has assumed that each plant has a100 percent yield (percent output of acceptable quality). How would you modify your analysis to account for yield differences across plants?

To adjust for yields less than 100%, the capacity of each plant could be

adjusted down by the loss percentage. Another approach would be to leave capacity as stated but adjust the amount shipped down by the scrap percentage.

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

This global supply chain is exposed to a variety of risks as enumerated below. Supply chain decisions should be made after careful assessment of the likelihood of these events and the effectiveness of possible mitigation plans. Disruptions – disasters, war, terrorism, labor disputes

Delays – inflexibility or poor yield of supply, insufficient supply Systems – IS breakdown, system integration issues
Forecast – inaccurate forecasting
Intellectual property – vertical integration and global sourcing Procurement – exchange rate movement, industry-wide capacity issues Receivables – number and financial strength of customers
Inventory – rate of obsolescence, holding costs, uncertainty of demand Capacity – cost and flexibility of capacit

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BioPharma Case Study. (2016, Apr 07). Retrieved from http://studymoose.com/biopharma-case-study-essay

BioPharma Case Study
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