Manufacturing Game Flashcards

1
Q

What are the three products?

A

Golden Bars
Kinter Eggs
Giftz boxes

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2
Q

What are the raw material prices (DKK/ton)?

A

Sugar: 3.900
Cacao: 35.800
Milk 18.600

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3
Q

What are the sales prices per product (DKK/ton)?

A

Golden bars: 40.000
Kinter eggs: 30.000
Giftz boxes 50.000

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4
Q

How is the forecasted demand behaving?

A

It starts at 72.000 and then there is a small dip followed by an upward trend

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5
Q

Which product has highest demand?

A

Giftz boxes and Golden bars are close, but golden bars becomes the larger

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6
Q

What is the forecasted total demand at the end?

A

84000

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7
Q

Which countries are the most popular?

A

DK and DE

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8
Q

What are the wages?

A

DK: 285
DE: 181
PL: 90
FR: 141

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9
Q

How long does production take?

A

Golden bars: 21
Kinter eggs: 20
Gift boxes: 25

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10
Q

What are the productivity factors?

A

DK: 80
DE: 91
PL: 65
FR: 87

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11
Q

What is the cost of overtime?

A

Overtime wage is 2x normal wage

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12
Q

What does yearly fixed cost correspond to?

A

1/5 of the initial investment

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13
Q

What happens if utilization if maxed out?

A

Above 80% utilization will cause productivity to linearly decrease. Max is 10 %

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14
Q

What is truck capacity

A

Golden Bars: 25 tons
Kinter Eggs: 20 tons
Giftz boxes: 6 tons

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15
Q

What is EBITDA short for?

A

Earning Before Interest, Tax, Depreciation and Amortization

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16
Q

What does EBITDA express?

A

It removes all non-cash expenses and capital structures and thus expresses the cash profit generated by the operations

17
Q

What is EVA?

A

Expresses the value a company generates from the funds invested in it.

How much does the investors earn compared to alternative investments

18
Q

How to calculate EVA?

A

EBITDA - TAX - (WACC * k)

19
Q

What are the game decisions

A

Capacity:
- Open factory
- Close lines / factory
- Add capacity

Business:
- Extra shifts
- Market service rules

20
Q

What are the depreciation periods?

A

Capacity = 10y
Buildings = 20y

21
Q

What is the sales value of capacity?

A

80% of book value

22
Q

What happens if we cannot service entire market?

A

Unit profit decreases by 15 %

23
Q

Describe the company

A

Chocolate production company with different products

Currently in distress

Rethink their footprint to improve their financial condition over the upcoming five year