CASE STUDY - BioPharma, Inc.
In 2013, Phillip (Phil) Landgraf faced several glaring problems in the financial performance of his company, BioPharma, Inc. The firm had experienced a steep decline in profits and high costs at its plants in Germany and Japan. Landgraf, the.company's president for world¬wide operations, knew that demand for the company's products was stable .across the globe. As .a result, the tor-plus capacity in his global production network looked like a luxury he could no longer afford.
Any improvement infinancial performance was dependent on having the most efficient network in place, because revenues were unlikely to grow. Cutting costs was thus a top priority for the Corning year. To help design a more cost-effective network, Landgraf assigned a task force to recommend a course of action.
Study Questions
1. How should BibPharma have used its production network in 2013? Should any of the, plants have been idled? What is the annual cost of your proposal, including import duties?
2. How should Landgraf structure his global production net-work? Assuine that the past is a reasonable indicator of the future in terms of exchange "rates.
3. Is there any plant for which it may be worth adding a mil-lion kilograms of additional capacity at a fixed cost of $3 million per year?
Attachment:- BioPharma Inc Guidelines and Case Study.rar