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Sample Operations Management Case

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Submitted By mentamide
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COMPANY BACKGROUND

Nokma Poultry is a business located in Batangas City, which produces Broilers for commercial use. It has been in the industry for almost 5 years and owned by an experienced veterinarian, Dr. Buenavista, who specializes in poultry farming. With more than 10 years’ experience in the field of poultry farming, Dr. Buenavista is considered an expert when it comes to poultry’s technicalities and operations. Nokma’s major business was as a sole contract grower for a big Poultry farm located in Lucena City. The approximate contract growing volume in the CALABARZON area is about 3.5Million; to which the Nokma Poultry has a maximum volume of 0.5% of the Total volume in CALABARZON area.

CONTRACT GROWING

Nokma Poultry has been in the broiler contract growing business for almost 5 years. Contract growing is easier to manage than any other poultry and livestock venture. It is a legal form of business to which the “Integrator” and the growers will both agree on all the conditions and complete disclosure of all terms affecting grower payment for production of poultry. The usual requirements for broiler contract growing operations are as follows:

1. Farm site (Land Area depending on the planned volume): This also takes into consideration the distance from the nearest residential area. Other poultry or hog farm, reliable source of electric power, source of potable water, and even the road condition leading to and inside the farm.

2. The Poultry House or the Facility for Operation: This includes the maximum volume capacity of the farm. If in case there is no facility or poultry house available, the integrator will help and assist grower with the farm-layout, design building and construction, and other details and information relevant or which will have a direct impact on the broiler’s health.

Once the basic requirements for

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