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Distribution

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CHAPTER CASE 2 – 2(Page 78): Peanut Plantation

Instruction:

A. Read Cases 2.2 on and page 78 of the text and answer the questions at the end of the case.

B. Due date: 12 March 2014

1. What interactions needed to take place among the marketing, manufacturing, logistics, and finance departments? Explain the logistics department’s role in the introduction of the new product.

2. Why is it necessary for the logistics department to be cognizant of all the details (quantity, timing) of the new product introduction? Discuss the issues that might arise (e.g., the drop in demand after the Super Bowl) and what responsibilities the logistics department would have as a result of these changes.

Mengapa perlu untuk jabatan logistik untuk mengetahui semua butir-butir (kuantiti, masa) pengenalan produk baru? Membincangkan isu-isu yang mungkin timbul (contohnya, penurunan permintaan selepas Bowl Super) dan apa tanggungjawab jabatan logistik akan mempunyai akibat daripada perubahan ini.

Peanut plantation (peanut) is a large processor of peanuts in Atlanta,Georgia. peanut’s major products are roasted (plain and salted) peanuts distributed in 6-ounce bags and 18-ounce cans. Peanut’s dominant market position was a result of its focus on product freshness and availability at stores. Peanut’s product development department created a new peanut product that is cinnamon flavored. It was also able to reduce the amount of cholesterol in its peanuts, thus making the peanuts a more healthful snack. However, the new flavor shortened the shelf life of its products.

Peanut’s marketing department decided to launch the new peanut product on the Friday before the Super Bowl. Advertisements were placed on television, on billboards, and in newspaper circulars one week before Super Bowl Sunday. A sweepstakes contest was also proposed that would award the contest winner a free trip for two to next year’s Super Bowl. Each can of the cinnamon peanuts contained an insert with a serial number that could be matched with the winning number on Peanut’s Web site.

To meet the estimated first week demand for the new product, manufacturing started making product one month before the introduction. Demand for the two days preceding the Super Bowl was estimated to be 2 million 18 ouncecans. Demand after the Super Bowl was estimated to be 1 million cans per week. Manufacturing capacity for the new product is 500,000 cans per week.

Peanut’s price per can to its retail customer would be $1.50, which would allow for a gross margin of $0.75 per can. Peanut’s cost to produce each can is $0.35. Inventory carrying costs per can are $0.05. Peanut’s finance department was concerned that the heavy promotion and high build-up of inventories would eliminate almost all of the profit Peanut would make on each can. Their directive to the product manager was that the product had to maintain its profit, or it would be pulled from the market.

Ladang kacang ( kacang) adalah pemproses besar kacang tanah di Atlanta , Georgia. produk utama kacang ini adalah dipanggang (plain dan masin ) kacang tanah diedarkan dalam beg 6 auns dan tin 18 auns . Kedudukan pasaran dominan kacang adalah hasil daripada tumpuan terhadap kesegaran produk dan ketersediaan di kedai-kedai . Jabatan pembangunan produk kacang itu mencipta produk kacang baru yang kayu manis berperisa. Ia juga dapat mengurangkan jumlah kolesterol dalam kacang tanah , lantas menjadikan kacang snek yang lebih sihat. Walau bagaimanapun , rasa baru dipendekkan hayat produk-produknya.

Jabatan pemasaran kacang memutuskan untuk melancarkan produk kacang baru pada hari Jumaat sebelum Super Bowl. Iklan diletakkan di televisyen, di papan iklan , dan dalam surat pekeliling akhbar seminggu sebelum Super Bowl Ahad. Satu pertandingan cabutan bertuah juga dicadangkan yang akan menganugerahkan pemenang peraduan perjalanan percuma untuk dua hingga Super Bowl tahun depan. Setiap tin kacang kayu manis mengandungi satu sisipan dengan nombor siri yang boleh dipadankan dengan nombor yang menang di laman web Kacang ini .

Bagi memenuhi anggaran permintaan minggu pertama untuk produk baru , pembuatan mula membuat produk satu bulan sebelum pengenalan. Permintaan untuk dua hari sebelum Bowl Super dianggarkan 2 juta 18 ouncecans . Permintaan selepas Bowl Super dianggarkan 1 juta tin seminggu. Kapasiti pengeluaran untuk produk baru adalah 500,000 tin seminggu.

Harga kacang bagi setiap tin kepada pelanggan runcit akan menjadi $ 1.50, yang membolehkan margin kasar sebanyak $ 0.75 setiap tin . Kos kacang untuk menghasilkan setiap tin adalah $ 0.35. Kos dibawa Inventori setin adalah $ 0.05. Jabatan kewangan kacang adalah bimbang bahawa promosi yang berat dan tinggi membina-up inventori akan menghapuskan hampir semua keuntungan kacang akan membuat pada setiap boleh. Arahan mereka kepada pengurus ptoduct adalah bahawa produk itu telah mengekalkan keuntungannya, atau ia akan ditarik dari pasaran.

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