Abstract
Shruti, the Production Manager at SYS Fertilizers, is drafting a budget to optimize profits for nitric acid plant. SYS Fertilizers produce nitric acid in three concentrations, i.e. 60%, 68%, and 98%. Prices vary for each concentration and distribution channel via tankers, containers, and pipelines. Shruti's challenge is to strategise a plan aligning production and distribution with these constraints to maximize profitability. She needs to devise a strategy to ensure both production quantities and distribution channels effectively meet market needs and demand while maintaining the company's competitive edge.
Additional Information
| Product Type | Exercise |
|---|---|
| Reference No. | O&DS0007(B)EX |
| Title | SYS Fertilizers (B): Product Mix Optimisation |
| Pages | 4 |
| 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, Transportation and Logistics |
| Learning Objective | The case can be used in optimisation concept courses to explore the optimisation of production and distribution channels available at the disposal of SYS Fertilizers as well as maximise profitability. It focuses on analysing how to effectively balance the production of different concentrations and distribution channels. With these, the reader has to take care of various factors within the case, such as cost, capacity and other contractual obligations. |
| Keywords | Product Mix Optimization; Distribution (Channel); Logistics; Optimization; Process Constraints |
| Country | India |
| State | Maharashtra |
| City | Mumbai |
| Access | For All |
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