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Lipman Bottle Company
Lipman Bottle Company
Lipman Bottle Company
1)
One Seperation: Two Seperation:
Market: Albany UoM Round Round
Bottle Size oz 0-1 0-1
Order Size Nos 5,000-9,999 5,000-9,999
Avg. Order Size Nos 7,500 7,500
Set-up Time Hrs 2 4
Hours/1,000 bottles Hrs 0.27 0.53
Operating Time/1,000 bottles Hrs 1 2.4
Total Time/1,000 bottles Hrs 1.27 2.93
Operating Cost/1,000 bottles $ 18.53 42.92
Cost/1,000 Passes $ 2.63 5.26
Direct Cost to Manufacturer $ 21.16 48.18
Scrap Cost/1,000 Bottles $ 1.4 3.3
Shipping Cost/1,000 Bottles $ - -
Total Direct Cost/1,000 bottles $ 22.56 51.48
17-32
100,000-249,999
175,000
4
0.02
1.76
1.78
26.08
5.26
31.34
6.3
-
37.64
0-1
100,000-249,999
175,000
4
0.02
1.76
1.78
26.08
5.26
31.34
-
1.06
32.40
17-32
100,000-249,999
175,000
4
0.02
1.76
1.78
26.08
5.26
31.34
-
26.19
57.53
Case 17-2 Lipman Bottle Company
3) Profit Margin: New York- New Direct Cost/1,000 Bottles (in $) Machine Hours/1,000 Bottles (in Hrs)
Jersey One Round Two Round Two Oval One Round Two Round
Bottle Size: 0-1
Order Size: 5,000- oz 22.22 49.24 39.87 1.27 2.93
9,999
Bottle Size: 17-
32 oz 47.35 74.37 65.00 1.27 2.93
Bottle Size: 0-1
Order Size: oz 18.49 41.77 32.40 1.01 2.42
100,000-249,999
Bottle Size: 17-
32 oz 43.62 66.90 57.53 1.01 2.42
From the above table it can be seen that though the profit margin is higher for larger bottle sizes and larger order siz
Though the gross margin of profit is higher for two seperation round>two seperation oval>one seperation round for
The profit margin computed over each machine hours is higers for one seperation round>two seperation oval>two s
Hence, Lipman should consider selling bottle sizes of 17-32 oz and one seperation round in New York and New Jerse
1,000 Bottles (in Hrs) Break Even Cost/1,000 Bottles (in $) Selling Price/1,000 Bottles (in $)
Two Oval One Round Two Round Two Oval One Round Two Round Two Oval
1,000 Bottles (in Hrs) Break Even Cost/1,000 Bottles (in $) Gross Margin/1,000 Bottles (in $) Gross Margin/Machine Hours (in $)
Two Oval One Round Two Round Two Oval One Round Two Round Two Oval One Round Two Round
10.32
15.01
10.65
16.69
International Software Solution
1)
Resource Plan
Resource Location Band FY1 FY2 FY3 FY4 FY5
Client Premises E 97.6 50.2 50.2 45.9 27.6
Offshore E 33 34.5 34.5 31.5 15
Client Premises D 56.5 44.5 70.6 58.1 1
Offshore D 59 48.5 49.3 51.9 53
Client Premises C 143.8 150.4 166.4 138.1 6
Offshore C 54.9 46.8 46.8 46.7 38.6
Client Premises B 13.4 17.3 17.3 15.9 8
Offshore B 344.7 447 470.1 419.2 223.2
Client Premises A 35 0 0 0 0
Offshore A 85.4 113.3 113.3 112.4 62.2
Total FTE months 4248.6 923.3 952.5 1018.5 919.7 434.6
2)
Spilt Labour Hours (in Hrs.)
Location FY1 FY2 FY3 FY4 FY5 Total
Client Premises 55,408 41,984 48,720 41,280 6,816 194,208
Offshore 103,860 124,218 128,520 119,106 70,560 546,264
Total 159,268 166,202 177,240 160,386 77,376 740,472
5)
Revised Labour Hours (in Hrs.)
Resource Location Band FY1 FY2 FY3 FY4 FY5
Client Premises E 14,054 7,229 7,229 6,610 3,974
Offshore E 5,346 5,589 5,589 5,103 2,430
Client Premises D 8,136 6,408 10,166 8,366 144
Offshore D 9,558 7,857 7,987 8,408 8,586
Client Premises C 23,008 24,064 26,624 22,096 960
Offshore C 9,882 8,424 8,424 8,406 6,948
Client Premises B 3,706 3,571 3,571 3,278 1,722
Offshore B 62,640 81,081 85,239 76,023 40,446
Client Premises A 6,504 712 1,130 930 16
Offshore A 16,434 21,267 21,281 21,166 12,150
Total Labour Hours 740,472 159,268 166,202 177,240 160,386 77,376