BioPharma Case Study Essay

BioPharma Case Questions1. How should BioPharma involve used its production network in 2009? Should each of the plants have been idled? What is the annual cost of your proposal, including import duties? This termination was obtained using the tables displayed below. Note that Germ both and japan produced none of the loosen product and that side of their plants has been idled. The annual cost of this response is$24.85 kernel Transportation Cost (millions)$1,268.31 come in turnout Cost (millions)$195.15Total Tariffs (millions)$1,488,315,983TOTAL apostrophizeHighcal labor giveLatin the Statesatomic number 63Asia w/o japanJapanMexicoU.S.brazil nut7001.2300Germany0150000India0053.7700.35Japan000200Mexico0000312.65U.S.000005Total71557318Relax toil plant lifeLatin AmericaEuropeAsia w/o JapanJapanMexicoU.S.Brazil7002.7700Germany000000India00.6535.2300Japan000000Mexico011.350030U.S.0000017Total71238317Total seed low OutputPlantTotalBrazil18Germany15India18Japan2Mexico30U.S.222. How should Phil anatomical structure his global production network? Assume that the then(prenominal) is a reasonable indicator of the future in terms of permute rates.Phil should note that the Dollar and peso have been getting killed by the Euro, Real and the divisionn the last three course of instructions. Over the five year period, the net movement has not been a disaster, and scholarship of business cycles would suggest that it would be wise to prevail capability and capabilities throughout the entire fork up string so that production can be amused as currencies move against each other.3. Is there any plant for which it may be worth adding a million kilograms of additional qualification at a fixed cost of $3 million per year?It doesnt appear this improves the solution shown in interrogative sentence 1. The plants that ar at capacity in dampen 1 are Brazil, India, Mexico, and the U.S. adding a million kilograms of capacity to those plants does not result in a depress overall cost for the entire supply chain.4. How are your recommendations affected by the decline of duties?A reduction in duties to 0% across the board results in the following costs$38.25Total Transportation Cost (millions)$1,325.40Total Production Cost (millions)$0.00Total Tariffs (millions)$1,363,650,824TOTAL COSTThe solution matrix is faraway less sparse virtually every grocery receives imports from every other market with the exception of Mexico and Asiawithout Japan. Production increases in Germany and Japan at the expense of India, Mexico, and the U.S.Highcal ProductionPlantLatin AmericaEuropeAsia w/o JapanJapanMexicoU.S.Brazil1.202.280.621.200.004.90Germany1.522.901.231.520.952.98India1.122.50.831.120.552.58Japan0.531.910.250.530.001.99Mexico1.522.901.231.520.952.98U.S.1.122.500.831.120.552.58Total71557318Relax ProductionPlantLatin AmericaEuropeAsia w/o JapanJapanMexicoU.S.Brazil1.201.480.001.480.003.65Germany1.522.460.951.660.953.03India1.122.060.551.260.552.63Japan0.53 1.470.000.670.002.04Mexico1.522.460.951.660.953.03U.S.1.122.060.551.260.552.63Total71238317Total Plant OutputPlantTotalBrazil18.00Germany21.67India16.87Japan9.93Mexico21.67U.S.16.875. The analysis has assumed that each plant has a100 percent sire (percent take of acceptable quality). How would you modify your analysis to account for yield differences across plants?To adjust for yields less than 100%, the capacity of each plant could beadjusted down by the loss percentage. Another approach would be to leave capacity as stated merely adjust the amount shipped down by the chicken feed percentage.6. What other factors should be accounted for when making your recommendations?This global supply chain is exposed to a variety of risks as enumerated below. Supply chain decisions should be made later careful assessment of the likelihood of these events and the effectiveness of affirmable mitigation plans. Disruptions disasters, war, terrorism, labor disputesDelays inflexibility or p itiable yield of supply, insufficient supply Systems IS breakdown, system desegregation issuesForecast inaccurate forecastingIntellectual topographic point vertical integration and global sourcing Procurement exchange rate movement, industry-wide capacity issues Receivables number and financial expertness of customersInventory rate of obsolescence, holding costs, uncertainty of take away Capacity cost and flexibility of capacit