Manufacturing Game Flashcards
What are the three products?
Golden Bars
Kinter Eggs
Giftz boxes
What are the raw material prices (DKK/ton)?
Sugar: 3.900
Cacao: 35.800
Milk 18.600
What are the sales prices per product (DKK/ton)?
Golden bars: 40.000
Kinter eggs: 30.000
Giftz boxes 50.000
How is the forecasted demand behaving?
It starts at 72.000 and then there is a small dip followed by an upward trend
Which product has highest demand?
Giftz boxes and Golden bars are close, but golden bars becomes the larger
What is the forecasted total demand at the end?
84000
Which countries are the most popular?
DK and DE
What are the wages?
DK: 285
DE: 181
PL: 90
FR: 141
How long does production take?
Golden bars: 21
Kinter eggs: 20
Gift boxes: 25
What are the productivity factors?
DK: 80
DE: 91
PL: 65
FR: 87
What is the cost of overtime?
Overtime wage is 2x normal wage
What does yearly fixed cost correspond to?
1/5 of the initial investment
What happens if utilization if maxed out?
Above 80% utilization will cause productivity to linearly decrease. Max is 10 %
What is truck capacity
Golden Bars: 25 tons
Kinter Eggs: 20 tons
Giftz boxes: 6 tons
What is EBITDA short for?
Earning Before Interest, Tax, Depreciation and Amortization
What does EBITDA express?
It removes all non-cash expenses and capital structures and thus expresses the cash profit generated by the operations
What is EVA?
Expresses the value a company generates from the funds invested in it.
How much does the investors earn compared to alternative investments
How to calculate EVA?
EBITDA - TAX - (WACC * k)
What are the game decisions
Capacity:
- Open factory
- Close lines / factory
- Add capacity
Business:
- Extra shifts
- Market service rules
What are the depreciation periods?
Capacity = 10y
Buildings = 20y
What is the sales value of capacity?
80% of book value
What happens if we cannot service entire market?
Unit profit decreases by 15 %
Describe the company
Chocolate production company with different products
Currently in distress
Rethink their footprint to improve their financial condition over the upcoming five year
