Finished Product Logistics Cost - Prepare Annual Sales Forecast - Management Assignment Help

Assignment Task:

CASE OBJECTIVE:  

Seedo(Hypothetical Brand) is one of the leading Full Cream Powdered Milk having a global footprint planning to enter into Pakistan Marketplace. You have been promoted to the Supply Chain Manager position within the Seedo Milk division. GM planning to launch Seedo in Pakistan Market. You need to prepare for your meeting with the General Manager and present your launch plan for Pakistan.  

You will need to determine the following for Pakistan: 

1. Prepare annual Sales Forecast & on the basis of which prepare production forecast 

Volume Forecast: 

a.   Consumer research of the idea, Full cream milk powder annual volume is 22.7 K tons. Past launches have shown that 60% of these consumers will buy the 1000gm and 40%  will buy the 500 gm pack. The test was based on a price for the 1000 gm of $12(hypothetical). 

2. A negotiating plan to determine shelf share and secondary  placement s you want with the customer. 

3. Selection of Manufacturing site & Production Start Timing 

4. Transporter  Selection and frequency of inbound shipments and monthly volume.

5.  Finished Product Logistics Cost 

PRODUCT SUPPLY 

Product Supply deals with the questions and problems of the manufacturing, purchasing, and logistics processes. 

Based on the information given below, you should decide on the location where to produce the new product (Seedo). Depending on this result, you have to calculate the manufacturing costs of the product for the final evaluation. 

Sourcing  and Plants: 

Sourcing is an integral part of any launch plan, and your task is to determine the best possible solutions that link in with your vision. The decision of where to produce is not made on a national, but on a global basis. The purpose is to do what is best for Seedo worldwide. In order to provide your market with the new product, you will need to evaluate and source from two alternative locations. 

Right now,  production for Seedo is in,  Istanbul Turkey. The Turkish plant currently is manufacturing near the  peak  of its capacity. The second  location is the  Dairy Product plant  is Al Jubayl,  located  in the  Kingdom Of Saudi Arabia. Al Jubayl  has  just  undergone a  major  re-organization,  thereby  making  space  for  additional  production lines. Al Jubayl currently produces  Dairy products & flavored milks etc. 

It has been  announced that  Istanbul  will  have  transferred some  of  its  Middle eastern production  volume  to Abu Dhabi plant  by  1st   Aug  2020,   thereby  freeing  up  some  capacity.  Production of any new  powdered milk  initiatives can thus  only be  scheduled  as of that  date.  It usually  takes  4  weeks  from  the  start  of  production  to  the  start  of shipments   (SOS)  to  send   out   to  customers   the  finished  products.    You  have  heard   from  your  Marketing colleagues that  to launch Seedo  earlier  than  Aug 2020  would  be  desirable.  The only option to do so from a product  supply standpoint would be to set up a powdered milk  production line temporarily in Al Jubayl.  However, this will require  a  one-time  investment  of  $500,000, and  is not  considered  to  be  strategic  by the  Product  Supply organization. 

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