Bic Pen Assignernt
Ricardo Carter
Jan 16, 2013
SCM 371
BIC Pen: Case Study
This value chain analysis of the BIC Corporation is occurring to provide individual with the knowledge of the thought process that businessman/businesswomen in the supply chain field use every day when deciding what company to purchase a certain product from. This process includes the breaking down of the company’s financial report and whether the product is eco-friendly. Financial report of any company usually includes material cost, manufacturing cost, direct labor, overhead cost, sg&a, packaging cost, transportation cost, and profit. This paper will be about breaking down BIC pens financial report to see if they are charge buyers the right price for 10000 pens per year for 5 years.
Material Cost:
The first step in figuring out the material cost is to take the pen part and weight each part, when this step is complete there will be 10 different parts to take into consideration. These parts are plastic ink holder/inner cap which weighs .9gram or 0.00198416 pound, Ink and there is 0.27ml of ink in each pen, Top Cap, Body, bottom Cap, and Ballpoint assembly holder which weighs 3.5grams or 0.00771618 pound, Ballpoint Holder which weighs 1grams or 0.000220462 pound, Socket for Ballpoint which weighs 1grams 0.000220462 pound, and Ballpoint which is .1 grams or 0.000220462 pound. The total material cost is $1961.59376 and the calculations for this are on the back-up page.
Direct Manufacturing Cost:
The manufacturing process of the BIC when making pens consists of using 4 machines which are the key components of the production of the 10,000 pen per year. These machines are injection molding machine, compressor for tungsten carbide, lacking machine, and pen assembling machine. The injection molding machine is used to make all the plastic components of the pen, the compressor for tungsten carbide is used for making the ballpoint of the pen, the lacking machine is used to sand the ballpoint before
Jan 16, 2013
SCM 371
BIC Pen: Case Study
This value chain analysis of the BIC Corporation is occurring to provide individual with the knowledge of the thought process that businessman/businesswomen in the supply chain field use every day when deciding what company to purchase a certain product from. This process includes the breaking down of the company’s financial report and whether the product is eco-friendly. Financial report of any company usually includes material cost, manufacturing cost, direct labor, overhead cost, sg&a, packaging cost, transportation cost, and profit. This paper will be about breaking down BIC pens financial report to see if they are charge buyers the right price for 10000 pens per year for 5 years.
Material Cost:
The first step in figuring out the material cost is to take the pen part and weight each part, when this step is complete there will be 10 different parts to take into consideration. These parts are plastic ink holder/inner cap which weighs .9gram or 0.00198416 pound, Ink and there is 0.27ml of ink in each pen, Top Cap, Body, bottom Cap, and Ballpoint assembly holder which weighs 3.5grams or 0.00771618 pound, Ballpoint Holder which weighs 1grams or 0.000220462 pound, Socket for Ballpoint which weighs 1grams 0.000220462 pound, and Ballpoint which is .1 grams or 0.000220462 pound. The total material cost is $1961.59376 and the calculations for this are on the back-up page.
Direct Manufacturing Cost:
The manufacturing process of the BIC when making pens consists of using 4 machines which are the key components of the production of the 10,000 pen per year. These machines are injection molding machine, compressor for tungsten carbide, lacking machine, and pen assembling machine. The injection molding machine is used to make all the plastic components of the pen, the compressor for tungsten carbide is used for making the ballpoint of the pen, the lacking machine is used to sand the ballpoint before