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Rosa’s Salsa: ICORE Case
Analysis |
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“To determine the best production method, Nick is faced
with the decision to make or buy his salsa. Many factors affect
this decision, such as expenses, risks, and expected costs per
unit of salsa produced. Five distinct possibilities of production
exist for Nick to evaluate, including three manufacturing methods
and two possible outsourced suppliers. Manufacturing options
comprise of fully developed automation, partially developed
automation, or using existing equipment for production. Any
internal manufacturing process will increase the risk of ingredient
supply fluctuations as all ingredients except salt are imported
from various locations in Mexico. If outsourced, the supply
of salsa can come from two producers, Sierra Salsa or Foods
of Monterey. By analyzing these options, we will determine which
selection is the least costly and thereby the best method of
production for Nick to implement. ”
“Given these two production possibilities, it is clear
that while the complete automation method requires the largest
initial expenditure, it generates the highest cost savings and
the highest successful production rate, clearly defining it
as the best solution for Nick to implement.
In reaching the figures for all of these methods of production,
several assumptions needed to be made. To accurately calculate
the total cost for the duration of the project, four years of
production needed to be used. To adjust for sales growth, the
financial growth forecast was used to inflate our initial forecasted
production of 1,421,280 units. This figure was inflated 28%
for year 2, 20% for year 3, and 11% for year 4 to calculate
the increase in sales. We also assumed all failed batches would
be reworked instead of discarded in the calculation of our expected
cost. Finally, we assumed each make or buy method had comparable
supply risks and fluctuations as either entire finished goods
or individual ingredients needed to be imported from Mexico.
”
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333 Wacker Drive |
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“The year was 1983; Chicago’s architecture
was booming yet consisted mainly of tall box high rises and skyscrapers.
Suddenly, Chicago’s architecture was changed forever with
the construction of 333 Wacker Drive, Chicago’s first postmodern
skyscraper. A title not easy to acquire, 333 Wacker Drive obtained
this honor due to the buildings immense innovations in construction
and style. Featuring a shape unlike any other, the building called
for only the best in design, engineering, and materials before the
construction could commence. Along with the physical aspects of
the building, the new style commanded change from the existing fashion
of architecture. This new style shattered the traditional glass
box style of building and created something entirely new with multiple
sections, angles, and shapes. With all aspects combined, 333 Wacker
Drive changed Chicago’s Architecture forever by enriching
it to a level never seen before. With the new standard for design
the building created, every postmodern building constructed in Chicago
afterward has faced 333 Wacker Drive in direct competition, yet
there has not been a building created to this day that surpasses
it in design and beauty.” |
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