49680: Engineering the supply chain of BarCo Corporation - Management Assignment Help

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Assignment Task:

 

Task:

 

CURTAILMENT PLAN

BarCo's problem was to determine which of its products would be least affected by the gas curtailment. All of the BarCo complexes would be included in the curtailment region in the event of a brownout. Except for BarCo's ammonia operations, all gas purchased was used as boiler fuel.
In its ammonia plant, gas was used as a source of raw materials. The manufacture of ammonia uses natural gas in the steam reforming process. In a detailed discussion with the CEO of MaxEnergy, BarCo learned that MaxEnergy would not specify the products to be curtailed. The curtailment procedure would be based primarily on a customer's usage pattern. Hence, BarCo had the flexibility to absorb curtailments where they would have minimum impact on profits.

 

Tasks (To be included in the Report):

1. Define the business problem and come up with a technique which can be helpful in analyzing this situation
2. Formulate and resolve production plan for 20 and 40% curtailment of natural gas usage
3. Formulate and resolve distribution plan for 40% curtailment scenario
4. Based on your analysis, provide a discussion on BarCo’s options and your recommendations for (i) the production and (ii) distribution plan; during the curtailment scenario
5. Conduct the sensitivity analysis for baseline scenario and describe the key outcomes (for both production and distribution plans) in simple terms for the top management
6. Contribution to profit and overhead for products from BarCo has a lot of fluctuations. Provide your recommendations for the management in terms of the impact of such changes on the production plans.

 

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