Facts for final assignment and other assignments this semester The following is a hypothetical company that does not actually exist but has information provided consistent with a real company. Starting 20 years ago, Boro Frozen Foods has produced single serve meals. At the beginning, the company produced eight

Facts for final assignment and other assignments this semester

The following is a hypothetical company that does not actually exist but has information provided consistent with a real company.

Starting 20 years ago, Boro Frozen Foods has produced single serve meals. At the beginning, the company produced eight (8) skus and ~4 million cases and saw annual sales increase 3% to 6% annually for the first 12 years. At this time the company was making 6 million cases per year and had 12 skus. Eight years ago, the company rebranded itself and added BBQ to its portfolio. The company added a line of meals branded Moonshine BBQ and sales increased dramatically reaching 18.9 million cases and 45 skus in 2022. The products are also very popular in Europe but the company has not as yet expanded sales outside the United States with the exception of limited volume through an international distributor.

The company added capacity over the years but has reached a point where a major expansion is needed to cover the anticipated growth and to add capacity for new, non-single-serve offerings (the European products), current domestic products, new single-serve items for both Europe and domestic sales, and to provide additional storage space and an area set up for export and other items required for European products. The expansion will take a full year to complete and will affect current operations as follows.

The plant has four assembly lines that run 2 shifts per day, 5 days per week, 50 weeks per year, eight hours of paid time per shift and 7.5 hours of actual run time (two 15-minute paid breaks). Line speed is fixed at the top end (24 cases or 288 individual units per minute) but may be slowed down if needed. The expansion will take place in what is currently a freezer area so a temporary contract to store 30 million pounds of frozen product will be needed for one year until the project is complete. The expansion will include a new line similar to the current four but more automated (less labor), two lines for single serve items, a quick change over line that can run single or non-single serve products, a line similar to the current lines but designed to meet European manufacturing standards (export) and increased storage of dry, fresh, refrigerated and frozen items with additional dock area and loading dock capacity.

The company has informed customers that this project will disrupt production but has committed to supplying the same number of total cases plus 2.5% next year. No single sku may be increased by more than 7.5% and each SKU does not have to be increased by the same percentage. The customers have also been informed that up to 15 current products may be eliminated this year (SKU rationalization).