Biopharma Case Essay

3687 Words15 Pages
Table of Contents 1.0 INTRODUCTION 2 1.1 Background & Problem Statement 2 1.2 Assumptions 2 1.3 Solution Approach 3 2.0 PROBLEM ANALYSIS 4 3.0 RESULTS 6 3.1 Transport model: Model 2005 6 3.2 Open/Close Model: Model – Improved 2005 6 3.3 Forecast Models: 2006 – 2010 8 4.0 SENSITIVITY ANALYSIS 9 4.1 Range of optimality – Distribution 9 4.2 Reduced costs – Distribution 10 4.3 Shadow Prices – Constraints 11 4.4 Range of feasibility – Constraints 11 5.0 CONCLUSION 12 5.1 Summary of Findings 12 5.2 Overall Recommendation 12 5.3 Further Analysis 13 1.0 INTRODUCTION 1.1 Background & Problem Statement BioPharma, Inc. is a global manufacturer of bulk chemicals used in the pharmaceutical industry which produces two chemicals that are called Highcal and Relax. These bulk chemicals are produced by plants from Brazil, Germany, India, Japan, Mexico and U.S. where Japanese and German plant is the technology and production leader respectively. It was seen by the company’s president, Landgraf that the demand for the company’s products was stable. However, the company is experiencing several problems in the financial performance in year 2005. For instance, decline in profits and high costs at its plants. In addition, it is suggested to have a more cost-effective network in order to improve the performance by saving cost in the same time. Therefore, the purpose of this report is to consider these factors by designing a distribution network to solve the problems that BioPharma is facing. This report comprises the problem analysis of the case, results, together with the interpretation of the results including sensitivity analysis, and concluded with several useful recommendations as well as a further analysis whereby the company could begin with some considerations for the future. 1.2 Assumptions Throughout the process of building the
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