Abstract
This case revolves around SYS Fertilizers, an established agribusiness firm, that faced a capacity dilemma in its nitric acid production line. The company received an offer to export an additional 70 metric ton (MT) of concentrated nitric acid (CNA) daily, but this new demand would exceed their current production capacity. The case challenges students to evaluate the feasibility of expanding production capacity, assess the associated costs, and determine the most profitable scenario for the company. The marketing manager, Shreyas, needed to perform a cost-benefit analysis to present a convincing plan to the managing board, which insisted on a break-even point of no more than one year.
Additional Information
| Product Type | Exercise |
|---|---|
| Reference No. | O&DS0007(A)EX |
| Title | SYS Fertilizers (A): Process Analysis |
| Pages | 3 |
| Published on | Jan 6, 2025 |
| Authors | Shinde, Shubham A; Parameshwari, Yoga M; Narayanaswami, Sundaravalli ; |
| Area | Operations & Decision Sciences (O&DS) |
| Discipline | Management Education , Operations Management, Quantitative Methods |
| Sector | Agriculture and Animal Husbandry, Manufacturing |
| Learning Objective | The primary purpose of this case is to give students practical experience in operations management, particularly in capacity planning, cost-benefit analysis and production optimisation. Students must consider various operational constraints, including the logistics of ammonia supply, plant shutdown times and the financial implications of expanding capacity. The case also introduces managing trade-offs between different production lines (CNA and dilute nitric acid or DNA) and optimising the supply chain to meet increased demand. |
| Keywords | Bottleneck; Capacity Utilization; Cost-Benefit Analysis; Optimization; Process Analysis |
| Country | India |
| State | Maharashtra |
| City | Mumbai |
| Access | For All |
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