Question: Problem: A small - scale industry in Oman is planning to manufacture starch from maize ( corn ) as its primary raw material. The business
Problem:
A smallscale industry in Oman is planning to manufacture starch from maize corn as its primary raw material. The business aims to produce tons of starch per day. However, the company faces several challenges:
Raw Material Supply: The company needs a reliable and costeffective supply of maize. The average price of maize in Oman is OMR per kg but prices fluctuate due to import dependency, leading to higher costs during certain times of the year.
Processing Costs: The production process includes steps like crushing, liquefaction, saccharification, and drying, with an estimated operational cost of OMR per kg of starch produced.
Capital Investment: The initial setup costs for machinery, plant infrastructure, and other fixed assets are estimated to be OMR. Suggest possible outcomes to overcome financial challenges.
Market Price Fluctuations: The average selling price for starch is OMR per kg but the market can be volatile. The company must ensure that even during price drops, it remains profitable.
Environmental Concerns: The manufacturing process generates wastewater that needs treatment before disposal. The company must find an affordable solution for managing this environmental issue.
Analyse and provide the recommendations and solutions, so that the company can overcome the above challenges of raw material supply, costs, market price volatility, and environmental management, ensuring a sustainable and profitable starch manufacturing business in Oman.
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