Montreal Maple Syrup is a processor and bottler of Canadian maple syrup, based in Montreal, Quebec. They are a family-owned business with annual sales of $16,000,000 and approximately 1,000,000 liters of syrup sold. The company purchases syrup in 205-liter (55 US Gallons) barrels, from a variety of farmers and then bottle the finished product. MMS is an authorized buyer of maple syrup; they sell their bottled product through three channels:

• To grocery stores, convenience stores and other retail outlets
• Direct to consumer from their store front located at their Montreal location
• Direct to consumer thorough their website

MMS currently uses freight providers and couriers to deliver products to all their wholesale and retail customers.

Their sales volume by channel is as follows:

75% - wholesale

15% - online

10% - MMS store front

The product:

Finished maple syrup is purchased in 205-liter drums (55 US gallons). https://www.cdlinc.ca/en/produits/maple-syrup-barrels/

MMS pays $1200 for a barrel of syrup. FYI, a barrel (full) weighs 280 kg.

In their production facility, MMS bottles, labels and packs the bulk syrup into the following 3 SKU's:

• 1 L bottle that is sold in grocery stores. Wholesale price: $12. Retail price: $21.
• 500ml bottle that is sold in grocery stores and souvenir shops. Wholesale price: $8. Retail price: $13.
• 250 ml bottle sold in souvenir shops. Wholesale Price: $5. Retail Price: $8.

The company is evaluating its product line and due to customer inquiries is considering adding the following SKU's:

• Maple cookies
• Maple candies
• Maple ice cream

They do currently sell similar products from other suppliers, in their retail location.

The company will outsource the production and packaging of these products, the product will then be shipped to MMS's warehouse and wait for wholesale orders. These products will also be sold in MMS's retail location.

Questions:

You have been hired by MMS to evaluate and make recommendations, regarding the logistics of their operations. Please answer the following questions, to the best of your ability.

1. Please evaluate the company's potential expansion of their product mix from a logistical standpoint. Evaluate each of the following SKU's:Maple cookies, Maple candies, Maple ice cream. Clearly state potential logistical steps (receiving, warehousing, picking and delivery) and any challenges. 20 points

Explain for each SKU's and challenges too.

2. Based on your evaluation, would you recommend NOT proceeding with any of the new SKU's? If not, which ones and why? 10 points.

Kindly mention the reference used .