Case Questions
1. As-Is Situation: What is the current annual cost of serving all the shops from the Mentone baking plant?
2. Scenario A: Assuming you were Mitchell and that the Mentone baking plant must be kept but not necessarily making both breads and cakes, would you recommend adding any new baking plant for the next three years? Why? If so, where should the new plants be built, what production lines should be included and how should the shops be served by the existing and the new baking plants? Make your recommendations on a year-by-year-basis (starting from next year).
3. Scenario B: If you could design a new network from scratch (assuming you had the choice of keeping or not keeping the existing baking facility at Mentone), what production network would you recommend and how should the shops be served by the new baking plants? Again, make your recommendations on a year-by-year-basis (starting from next year).
4. Scenario C: If you were required to set up only one production line at each baking plant (i.e., either baking breads or pies but not both), and assuming you could design a new network from scratch as you did in Question 3, what production network would you recommend and how should the shops be served by the new baking plants? Again, make your recommendations on a year-by-year-basis (starting from next year).
5. Action Plan: Taking into account the construction costs of the new plants and the scrape value of the existing plant and assuming the demand for breads and pies will become stabilized in three years, what is the network configuration you would recommend for Oz Bread for the long run and how should the shops be served by the new baking plants? Analyze the total costs involved under the three scenarios taking into account the construction cost of the new plants and the scrap value of the existing baking facility at Mentone. For simplify reason, net present value, inflation, and depreciation, etc. can be ignored in the calculation. Upon the analysis, generate an action plan for your final recommendation on a year-by-year basis from Year 0 to Year 3 assuming the current year is Year 0, i.e., what should Oz Bread do at the beginning of Years 0, 1, 2 and 3, if any.
2000 words
10 references.
Attachment:- Case.rar