PART $1$: CASE ANALYSIS

As Alicia Wong, my analysis of the feasibility of making mustard in$-$house would involve several key considerations:

$1.$ Cost Comparison: The current cost of purchasing mustard is $$72$ per drum $($$$64$ for the mustard itself and $$8$ for freight$).$ This does not include the labor costs of handling the drums, which are an additional overhead. In contrast, the proposed in$-$house manufacturing cost amounts to roughly $$0\mathrm{.}3525$ per liter $($$$0\mathrm{.}15$ for the spice blend, $$0\mathrm{.}1875$ for vinegar, $$0\mathrm{.}025$ for water, and $$0\mathrm{.}105$ for labor and overhead$).$ Given that each drum contains $200$ liters, the in$-$house manufacturing cost per drum would be approximately $$70\mathrm{.}50.$ This suggests a slight cost$-$saving per drum.

$2.$ Quality Control: Quality assurance's concerns

about maintaining the quality and taste of the mustard are crucial, as it is a key ingredient in many of TFL$\text{'}$s products. Conducting extensive tests to ensure that the in$-$house mustard matches or surpasses the quality of the externally sourced product is essential.

$3.$ Operational Feasibility: The production team's confidence in accommodating the mustard production without requiring additional workers is positive. However, the impact on existing workers' schedules and the potential need for overtime or shift adjustments should be evaluated.

Missing Information and How to Collect It:

$1.$ Detailed Quality Testing Results: It's necessary to work closely with the quality assurance team to conduct comprehensive tests on the in$-$house mustard batch to compare it with the current

standard.

$2.$ Long$-$term Supplier Reliability and Cost

Predictions: Understanding the long$-$term trends in the cost and availability of the spice blend and other ingredients would be important. This can be gathered through market research and discussions with suppliers.

$3.$ Impact on Worker Efficiency and Morale:

Assessing whether the additional workload can be managed without negatively impacting worker morale or efficiency. Employee feedback sessions or pilot runs can provide this insight.

$4.$ Environmental Impact: Evaluate the environmental benefits or drawbacks of in$-$house manufacturing versus external purchasing, particularly in terms of waste management and energy consumption.

Major Topics for the Proposal to the CEO:

$1.$ Cost$-$Benefit Analysis: Present a detailed comparison of the current costs of purchasing mustard externally versus the projected costs of in$-$house production.

$2.$ Quality Assurance: Outline the plan for ensuring that the in$-$house mustard meets the required quality standards, including test results and ongoing quality con & neasures.

PART $2$ ADDITIONAL QUESTIONS

Short$/$Longer Term Benefits of In$-$House Production:

$$ Short$-$term benefits may include cost savings, reduced reliance on external suppliers, and improved operational efficiency.

$$ Longer$-$term benefits could include enhanced control over product quality, flexibility to adapt to market changes, and potential for innovation in mustard formulations.

$5.$ Risks for TFL:

$$ Risks include potential quality issues affecting TFL$\text{'}$s products, disruptions in the supply chain for raw materials, and increased operational complexity and costs associated with in$-$house production.

$6.$ Savings Potential Attractive Enough:

$$ The savings potential should be evaluated in conjunction with other factors such as quality control, operational impact, and strategic alignment. If the cost savings outweigh the risks and potential drawbacks, then the proposal may be considered attractive.

$7.$ Other Alternatives:

$$ Alicia should explore alternative strategies such as renegotiating contracts with existing suppliers, sourcing mustard from alternative suppliers, or outsourcing production to third$-$party manufacturers. Each alternative should be evaluated based on its impact on cost$,$ quality, and operational flexibility.

$8.$ Supply's Role in Make or Buy:

$$ Supply's role involves assessing the feasibility and implications of in$-$house production, coordinating with production, quality assurance, and other departments, and ensuring seamless implementation of the chosen strategy. Supply should also monitor supplier performance and market conditions to inform future decisions regarding make or buy options.