3. Petitdan is a French multinational food products corporation. Five years ago, they acquired a Turkish...

   

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3. Petitdan is a French multinational food products corporation. Five years ago, they acquired a Turkish bottled water company, AySu. Given the increasing demand for non-alcoholic drinks in recent years globally, Petitdan would like to introduce a soft drinks range featuring local fruit flavours of Turkey. 4 a) Identify one social, one economic and one environmental initiative that Petitdan can set up to improve the sustainability of the supply chain for the new soft drinks range, and set out how each initiative will improve Petitdan's triple bottom line. b) Whelan and Fink (2016) proposed six drivers of positive impact of sustainability on business performance. Identify one driver that is relevant to Petitdan, and briefly explain how it may benefit Petitdan in the context of developing the new soft drinks range. After extensive market research, Petitdan decided to produce a fig-flavoured soft drink and a quince-flavoured soft drink. The selling prices and the weekly demand for these soft drinks are given in the diagram below. The weekly demand for the drinks is constant. After extensive market research, Petitdan decided to produce a fig-flavoured soft drink and a quince-flavoured soft drink. The selling prices and the weekly demand for these soft drinks are given in the diagram below. The weekly demand for the drinks is constant. Each bottle of drink uses raw materials with costs as shown in the diagram below. Soft drinks production uses three machines: Machine I, Machine II and Machine III. There is only one of each machine. Each of these three machines performs different tasks and can work only on one bottle of soft drink at a time. Processing times are shown in the diagram below. Soft drinks production takes place eight hours a day for five days a week, and each machine is available for the whole duration of these operating hours. Set up and transfer times are zero. Petitdan is confident that the production machines are extremely reliable and will not experience any downtime. Machine I 0.25 min./bottle Raw Material 1 $0.4/bottle Fig Flavoured Selling price: $1.8/bottle Demand: 7500 bottles/week Machine III* 0.10 min./bottle Quince Flavoured Selling price: $1.3/bottle Demand: 6000 bottles/week Machine II 0.20 min./bottle Raw Material 2 $0.1/bottle Machine III* 0.15 min./bottle Machine II* 0.05 min./bottle Raw Material 3 $0.2/bottle *To provide a better graphical illustration of the production process, two representations of Machine II and Machine Ill are used in this diagram. As mentioned in the question above, there is, however, only one of each machine. c) Calculate the utilisation of each machine and identify the constraint (bottleneck). *To provide a better graphical illustration of the production process, two representations of Machine II and Machine III are used in this diagram. As mentioned in the question above, there is, however, only one of each machine. c) Calculate the utilisation of each machine and identify the constraint (bottleneck). d) Calculate the contribution margin per minute for the fig-flavoured soft drink and the quince-flavoured soft drink, where contribution margin is defined as selling price per bottle minus the cost of raw materials incurred by producing each bottle. Consider the constraint as calculated under part c) when answering this question. e) Determine the optimal combination of fig-flavoured soft drink and quince- flavoured soft drink to produce within the capacity constraints and calculate the corresponding maximum total weekly contribution that Petitdan can achieve, bearing in mind that total contribution equals total sales minus total cost of raw materials. 3. Petitdan is a French multinational food products corporation. Five years ago, they acquired a Turkish bottled water company, AySu. Given the increasing demand for non-alcoholic drinks in recent years globally, Petitdan would like to introduce a soft drinks range featuring local fruit flavours of Turkey. 4 a) Identify one social, one economic and one environmental initiative that Petitdan can set up to improve the sustainability of the supply chain for the new soft drinks range, and set out how each initiative will improve Petitdan's triple bottom line. b) Whelan and Fink (2016) proposed six drivers of positive impact of sustainability on business performance. Identify one driver that is relevant to Petitdan, and briefly explain how it may benefit Petitdan in the context of developing the new soft drinks range. After extensive market research, Petitdan decided to produce a fig-flavoured soft drink and a quince-flavoured soft drink. The selling prices and the weekly demand for these soft drinks are given in the diagram below. The weekly demand for the drinks is constant. After extensive market research, Petitdan decided to produce a fig-flavoured soft drink and a quince-flavoured soft drink. The selling prices and the weekly demand for these soft drinks are given in the diagram below. The weekly demand for the drinks is constant. Each bottle of drink uses raw materials with costs as shown in the diagram below. Soft drinks production uses three machines: Machine I, Machine II and Machine III. There is only one of each machine. Each of these three machines performs different tasks and can work only on one bottle of soft drink at a time. Processing times are shown in the diagram below. Soft drinks production takes place eight hours a day for five days a week, and each machine is available for the whole duration of these operating hours. Set up and transfer times are zero. Petitdan is confident that the production machines are extremely reliable and will not experience any downtime. Machine I 0.25 min./bottle Raw Material 1 $0.4/bottle Fig Flavoured Selling price: $1.8/bottle Demand: 7500 bottles/week Machine III* 0.10 min./bottle Quince Flavoured Selling price: $1.3/bottle Demand: 6000 bottles/week Machine II 0.20 min./bottle Raw Material 2 $0.1/bottle Machine III* 0.15 min./bottle Machine II* 0.05 min./bottle Raw Material 3 $0.2/bottle *To provide a better graphical illustration of the production process, two representations of Machine II and Machine Ill are used in this diagram. As mentioned in the question above, there is, however, only one of each machine. c) Calculate the utilisation of each machine and identify the constraint (bottleneck). *To provide a better graphical illustration of the production process, two representations of Machine II and Machine III are used in this diagram. As mentioned in the question above, there is, however, only one of each machine. c) Calculate the utilisation of each machine and identify the constraint (bottleneck). d) Calculate the contribution margin per minute for the fig-flavoured soft drink and the quince-flavoured soft drink, where contribution margin is defined as selling price per bottle minus the cost of raw materials incurred by producing each bottle. Consider the constraint as calculated under part c) when answering this question. e) Determine the optimal combination of fig-flavoured soft drink and quince- flavoured soft drink to produce within the capacity constraints and calculate the corresponding maximum total weekly contribution that Petitdan can achieve, bearing in mind that total contribution equals total sales minus total cost of raw materials.

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SOLUTION a Petitdan can set up the following initiatives to improve the sustainability of the supply chain for the new soft drinks range Social initiative Petitdan can implement a fair trade program t... View the full answer