Analysis and Interim Report
Valeria Balseca
Sales & Marketing Manager
Claudia Prada
MM Manager
Jhonattan Polo
CEO
1. Strategies of Companies
Company DD
Company EE
Company FF
Price
Avg Price Decreasing
(constant rate)
Avg Price Constant
(oscillating variations)
Avg Price Decreasing
(constant rate)
Margin
Increasing
(-29% to 21%)
Decreasing
(1% to -4%)
Increasing
(-47% to -3%)
Marketing
No Marketing Strategy
Low Marketing
investment
$0
$865
High Marketing
investment in Q4, but not
representative
$4170
Inventory
Low Inventory Levels
(Avg 199,084 un/day)
Medium Inv. levels
(Avg 205,109 un/day)
High Inventory levels
(Avg 228,691 un/day)
Production
No new product lines
2 New Product lines of
500g (Blueberry &
Original)
2 New Product lines of
500g (Strawberry &
Mixed)
Procurement
High order quantities
(>200,000KG)
High order quantities
(>200,000KG)
Low order quantities
(>200,000KG)
Investments
None
Reduce set up time
($200,000: from 12hr to
7.5hr approx.)
None
2. Profit and revenues
2. Profit and revenues
3. Investment for reducing setup time
5. Investment for increasing capacity
No company invested for
increasing capacity
5. Sold quantities and revenue – DC 10
Highest: Company DD
5. Sold quantities and revenue – DC 12
Highest: Company DD
5. Sold quantities and revenue – DC 14
Highest in Units: Company EE
Highest in Revenue: Company FF
6. % of Sold quantities of new products
1 Kg Blueberry Muesli
1 Kg Mixed Fruit Muesli
1 Kg Nut Muesli
1 Kg Original Muesli
218136
118444
227449
39932
1 Kg Raisin Muesli
1 Kg Strawberry Muesli
500 g Blueberry Muesli
500 g Original Muesli
Grand Total
109206
118689
87172
150000
1069028
6. % of Sold quantities of new products
1 Kg Blueberry Muesli
1 Kg Mixed Fruit Muesli
1 Kg Nut Muesli
1 Kg Original Muesli
105455
94000
157811
72085
1 Kg Raisin Muesli
1 Kg Strawberry Muesli
500 g Mixed Fruit Muesli
500 g Strawberry Muesli
Grand Total
252063
122000
133621
860
937895
7. % of revenue from new products
1 Kg Blueberry Muesli
1 Kg Mixed Fruit Muesli
1 Kg Nut Muesli
1 Kg Original Muesli
$ 885,452.66
$ 618,646.33
$ 1,176,048.93
$ 154,035.71
1 Kg Raisin Muesli
1 Kg Strawberry Muesli
500 g Blueberry Muesli
500 g Original Muesli
Grand Total
$ 479,948.22
$ 660,463.83
$ 322,878.38
$ 398,688.16
$ 4,696,162.22
7. % of revenue from new products
1 Kg Blueberry Muesli
1 Kg Mixed Fruit Muesli
1 Kg Nut Muesli
1 Kg Original Muesli
$
$
$
$
596,277.07
466,220.20
631,635.52
312,410.70
1 Kg Raisin Muesli
1 Kg Strawberry Muesli
500 g Mixed Fruit Muesli
500 g Strawberry Muesli
Grand Total
$ 1,093,085.18
$ 601,734.20
$ 636,182.48
$
5,762.00
$ 4,343,307.35
8. % of Revenue of each Distribution Channel
9. Sold quantities and prices of each product
FF-F01 1 Kg Nut Muesli
Average Price
DD
EE
FF
DC 10
$ 4.97
$ 5.58
$ 4.06
Average Price
DD
EE
FF
DC 12
$ 4.60
$ 3.82
$ 4.05
9. Sold quantities and prices of each product
FF-F02 1 Kg Blueberry Muesli
Average Price
DD
EE
FF
DC 10
$ 5.68
$ 4.51
$ 5.65
Average Price
DD
EE
FF
DC 12
$ 5.71
$ 3.88
$ 5.76
9. Sold quantities and prices of each product
FF-F03 1 Kg Strawberry Muesli
Average Price
DD
EE
FF
DC 10
$ 5.42
$ 5.54
$ 4.89
Average Price
DD
EE
FF
DC 12
$ 5.35
$ 5.61
$ 5.28
9. Sold quantities and prices of each product
FF-F04 1 Kg Raisin Muesli
Average Price
DD
EE
FF
DC 10
$ 4.69
$ 4.42
$ 4.40
Average Price
DD
EE
FF
DC 12
$ 4.85
$ 4.54
$ 4.39
9. Sold quantities and prices of each product
FF-F05 1 Kg Original Muesli
Average Price
DD
EE
FF
DC 10
$ 4.60
$ 3.82
$ 4.05
Average Price
DD
EE
FF
DC 12
$ 4.78
$ 3.92
$ 4.73
9. Sold quantities and prices of each product
FF-F06 1 Kg Mixed Fruit Muesli
Average Price
DD
EE
FF
DC 10
$ 5.31
$ 5.17
$ 4.93
Average Price
DD
EE
FF
DC 12
$ 5.51
$ 5.31
$ 5.06
9. Sold quantities and prices of each product
FF-F02 500 Kg Blueberry Muesli
Average Price DC 12
EE
$ 3.85
Average Price DC 14
EE
$ 4.71
9. Sold quantities and prices of each product
FF-F03 500 Kg Strawberry Muesli
Average Price DC 14
FF
$ 6.70
9. Sold quantities and prices of each product
FF-F05 500 Kg Original Muesli
Average Price DC 12
EE
$ 2.54
Average Price DC 14
EE
$ 3.57
9. Sold quantities and prices of each product
FF-F06 500 Kg Mixed Fruit Muesli
Average Price DC 12
FF
$ 4.53
Average Price DC 14
FF
$ 5.10
10. Prices changes of each product
FF-F01 1 Kg Nut Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
5.26 $
5.39 $
5.79 $
FF
5.65 $
5.29 $
5.32 $
5.00
5.07
5.21
10. Prices changes of each product
FF-F02 1 Kg Blueberry Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
5.75 $
5.94 $
6.08 $
FF
4.68 $
5.00 $
5.04 $
5.50
5.66
5.81
10. Prices changes of each product
FF-F03 1 Kg Strawberry Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
5.61 $
5.84 $
5.98 $
FF
5.56 $
5.59 $
5.59 $
5.29
5.39
5.45
10. Prices changes of each product
FF-F04 1 Kg Raisin Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
4.60 $
4.77 $
5.14 $
FF
4.62 $
5.03 $
5.18 $
4.54
4.67
4.86
10. Prices changes of each product
FF-F05 1 Kg Original Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
4.76 $
4.94 $
5.37 $
FF
4.15 $
4.08 $
4.25 $
4.26
4.39
4.68
10. Prices changes of each product
FF-F06 1 Kg Mixed Fruit Muesli
COMPANY
DC 10
DC 12
DC 14
DD
$
$
$
EE
5.38 $
5.64 $
6.03 $
FF
5.26 $
5.31 $
5.42 $
5.38
5.46
5.57
11. Marketing Expense
12. Production
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
DD
EE
FF
DD
EE
FF
DD
EE
FF
DD
EE
FF
F06
40,000
1
92,813
23,000
83,000
2
44,092
71,000
0
3
0
40,000
31,500
4
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)
25000
22500
20000
17500
15000
12500
10000
7500
5000
2500
0
25000
22500
20000
17500
15000
12500
10000
7500
5000
2500
0
25000
22500
20000
17500
15000
12500
10000
7500
5000
2500
0
37%
64%
75%
64%
48%
53%
71%
16%
28%
62%
45%
47%
13. Fixed costs (daily) for company FF
14. 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)
15. Raw Materials Cost
• Average raw material cost per company (from
operations table):
DD
EE
FF
R01
€ 1.75
€ 1.78
€ 1.79
R02
€ 3.81
€ 4.20
€ 3.85
R03
€ 3.67
€ 4.11
€ 3.96
R04
€ 1.19
€ 1.07
€ 1.25
R05
€ 0.99
€ 1.01
€ 1.00
R06
€ 0.83
€ 0.88
€ 0.83
P01
€ 0.29
€ 0.28
€ 0.28
P02
€ 0.12
€ 0.12
€ 0.12
P03
€ 0.21
€ 0.21
€ 0.21
P04
€ 0.09
€ 0.09
€ 0.09
15. BOM (end of simulation)
DD
DD
DD
DD
DD
DD
EE
EE
EE
EE
EE
EE
FF
FF
FF
FF
FF
FF
F01
F02
F03
F04
F05
F06
R01
0.2
0
0
0
0
0.1
R02
0
0.2
0
0
0
0.05
R03
0
0
0.2
0
0
0.05
R04
0
0
0
0.2
0
0.1
R05
0.4
0.4
0.4
0.4
0.5
0.35
R06
0.4
0.4
0.4
0.4
0.5
0.35
P01
1
1
1
1
1
1
P02
1
1
1
1
1
1
P03
0
0
0
0
0
0
P04 RM Cost
0
€ 1.49
0
€ 1.90
0
€ 1.87
0
€ 1.37
0
€ 1.32
0
€ 1.71
F01
F02
F03
F04
F05
F06
R01
0.2
0
0
0
0
0.1
R02
0
0.2
0
0
0
0.05
R03
0
0
0.2
0
0
0.05
R04
0
0
0
0.2
0
0.1
R05
0.4
0.4
0.4
0.4
0.2
0.35
R06
0.4
0.4
0.4
0.4
0.8
0.35
P01
1
1
1
1
1
1
P02
1
1
1
1
1
1
P03
0
0
0
0
0
0
P04 RM Cost
0
€ 1.52
0
€ 2.00
0
€ 1.98
0
€ 1.38
0
€ 1.31
0
€ 1.77
F01
F02
F03
F04
F05
F06
R01
0.2
0
0
0
0
0.14
R02
0
0.2
0
0
0
0.01
R03
0
0
0.1
0
0
0.01
R04
0
0
0
0.2
0
0.14
R05
0.2
0.2
0.1
0.4
0.2
0.1
R06
0.6
0.6
0.3
0.4
0.8
0.1
P01
1
1
0
1
1
0
P02
1
1
0
1
1
0
P03
0
0
1
0
0
1
P04 RM Cost
0
€ 1.46
0
€ 1.87
1
€ 1.05
0
€ 1.39
0
€ 1.27
1
€ 0.99
15. Planned Manufacturing Cost
• Company FF
15. Planned Manufacturing Costs
DD
DD
DD
DD
DD
DD
EE
EE
EE
EE
EE
EE
FF
FF
FF
FF
FF
FF
F01
F02
F03
F04
F05
F06
RM Cost
€ 1.49
€ 1.90
€ 1.87
€ 1.37
€ 1.32
€ 1.71
Planned Cost
€
3.20
€
3.61
€
3.58
€
3.08
€
3.03
€
3.42
F01
F02
F03
F04
F05
F06
RM Cost
€ 1.52
€ 2.00
€ 1.98
€ 1.38
€ 1.31
€ 1.77
Planned Cost
€
3.23
€
3.71
€
3.69
€
3.09
€
3.02
€
3.48
F01
F02
F03
F04
F05
F06
RM Cost
€ 1.46
€ 1.87
€ 1.05
€ 1.39
€ 1.27
€ 0.99
Planned Cost
€
3.17
€
3.58
€
2.76
€
3.10
€
2.98
€
2.70
DD
DD
DD
DD
DD
DD
EE
EE
EE
EE
EE
EE
FF
FF
FF
FF
FF
FF
F01
F02
F03
F04
F05
F06
DC10
€ 4.30
€ 5.25
€ 5.20
€ 4.00
€ 4.20
€ 4.80
DC12
€ 4.50
€ 5.25
€ 4.50
€ 4.25
€ 4.40
€ 5.00
DC14
€ 5.00
€ 5.25
€ 5.50
€ 4.50
€ 4.75
€ 5.50
F01
F02
F03
F04
F05
F06
DC10
€ 4.85
€ 2.28
€ 5.00
€ 4.01
€ 2.28
€ 4.84
DC12
€ 4.09
€ 2.35
€ 5.00
€ 4.01
€ 2.00
€ 4.70
DC14
€ 4.09
€ 2.33
€ 5.00
€ 4.01
€ 2.00
€ 4.84
F01
F02
F03
F04
F05
F06
DC10
€ 3.20
€ 5.00
€ 4.00
€ 3.90
€ 3.00
€ 4.00
DC12
€ 3.30
€ 5.10
€ 4.00
€ 4.00
€ 3.25
€ 4.00
DC14
€ 3.40
€ 5.00
€ 4.00
€ 4.00
€ 3.25
€ 4.00
16. Purchase
• Vendors List (Company FF)
16. Purchase (table ekpo)
16. Purchase
17. Inventory Changes
F01
F02
F03
F04
F05
F06
Nuts
Blueberries
Strawberries
Raisins
Original
Mixed Fruits
18. Days out of stock
Days without Inventory - F01
Days without Inventory - F04
30
30
20
20
10
10
0
0
1
2
DD
3
EE
4
1
FF
2
DD
Days without Inventory - F02
EE
4
FF
Days without Inventory - F05
30
30
20
20
10
10
0
3
0
1
2
DD
3
EE
4
1
FF
2
DD
Days without Inventory - F03
EE
4
FF
Days without Inventory - F06
30
30
20
20
10
10
0
3
0
1
2
DD
3
EE
FF
4
1
2
DD
3
EE
FF
4
COMPANY
DD
EE
FF
F01
F02
F03
F04
F05
F06
TOTAL
148
185
119
Nuts
Blueberries
Strawberries
Raisins
Original
Mixed Fruits
19. Days without Production
Days without Production
30
25
20
15
10
5
0
1
3
2
DD
EE
FF
4
20. Production Utilization Rate
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
1
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
2
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
3
15
17
19
21
23
25
27
29
17
19
21
23
25
27
29
17
19
21
23
25
27
29
4
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
1
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
2
15
17
19
21
23
25
27
29
1
3
5
7
9
11
13
3
15
4
100%
1
3
5
7
9
11
13
15
1
17
19
21
23
25
27
29
1
3
5
7
9
11
13
15
2
17
19
21
23
25
27
29
1
3
5
7
9
11
13
15
3
17
19
21
23
25
27
29
1
3
5
7
9
11
13
15
4
21. Prices and profit correlation.
Company FF
Correlations:
1) Prices and profit
2) Price and revenue
3) Inventory and profit
4) Inventory and revenue
5) Profit/revenue and marketing expenses
6) Profit/revenue and utilization rate of production
7) Profit/revenue and investment
What factor do you think is more critical?
21. Prices and profit correlation.
Company EE
Correlations:
1) Prices and profit
2) Price and revenue
3) Inventory and profit
4) Inventory and revenue
5) Profit/revenue and marketing expenses
6) Profit/revenue and utilization rate of production
7) Profit/revenue and investment
What factor do you think is more critical?
21. Prices and profit correlation.
Company DD
Correlations:
1) Prices and profit
2) Price and revenue
3) Inventory and profit
4) Inventory and revenue
5) Profit/revenue and marketing expenses
6) Profit/revenue and utilization rate of production
7) Profit/revenue and investment
What factor do you think is more critical?
21. Prices and profit correlation.
Company DD, EE, FF
Correlations:
1) Prices and profit
2) Price and revenue
3) Inventory and profit
4) Inventory and revenue
5) Profit/revenue and marketing expenses
6) Profit/revenue and utilization rate of production
7) Profit/revenue and investment
What factor do you think is more critical?
22. 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