Pete's Peanuts
Pete’s Peanuts
Andriy Dilion
Colorado Technical University
Author Note
This paper was prepared for SCM210, CS33-01, taught by Jan Palmen on 19JAN14.
Abstract
The highest demand for snacks including peanuts is during sports games, which includes the National Collegiate Athletic Association (NCAA) basketball playoffs. Pete’s Peanuts Snacks, which is based in Albany, Georgia mainly distributes roasted (plain and salted peanuts) and new spicy flavored peanuts decided to release cinnamon flavored peanuts for the Final Four weekend. Since the company is getting ready to release a new product in order for the company to make profit they need to do the proper kind of advertisement, making sure that the demand is met by the manufacturer, that the product reaches the store shelves on time and the shelves keep getting filled as needed, and that after all the sales the company makes profit on the product. Pete’s advertisement was scheduled on billboards, Facebook, TV, and newspaper three weeks before the Final Four weekend. The estimated demand for the Final Four weekend was estimated to be 3 million 18oz cans, and 1 million for every weekend after, while the manufacturing capacity is 1 million per week. “Pete’s price to its retail customers is $2.50 per can which would allow a gross margin of $1.25 per can. Pete’s cost to produce each can is $0.85 inventory carrying costs per can are $0.10 per can.”(Supply Chain Management: A Logistics Perspective, P.74, Case 2.2, Pete’s) How will the company maintain its products freshness, advertise properly, keep up the supply, and still make profit? The highest demand for snacks including peanuts is during sports games, which includes the National Collegiate Athletic Association (NCAA) basketball playoffs.
Pete’s Peanuts When a new product gets released into the market the company has the following questions to look at to make sure that the operation runs smoothly. “What interactions and
Andriy Dilion
Colorado Technical University
Author Note
This paper was prepared for SCM210, CS33-01, taught by Jan Palmen on 19JAN14.
Abstract
The highest demand for snacks including peanuts is during sports games, which includes the National Collegiate Athletic Association (NCAA) basketball playoffs. Pete’s Peanuts Snacks, which is based in Albany, Georgia mainly distributes roasted (plain and salted peanuts) and new spicy flavored peanuts decided to release cinnamon flavored peanuts for the Final Four weekend. Since the company is getting ready to release a new product in order for the company to make profit they need to do the proper kind of advertisement, making sure that the demand is met by the manufacturer, that the product reaches the store shelves on time and the shelves keep getting filled as needed, and that after all the sales the company makes profit on the product. Pete’s advertisement was scheduled on billboards, Facebook, TV, and newspaper three weeks before the Final Four weekend. The estimated demand for the Final Four weekend was estimated to be 3 million 18oz cans, and 1 million for every weekend after, while the manufacturing capacity is 1 million per week. “Pete’s price to its retail customers is $2.50 per can which would allow a gross margin of $1.25 per can. Pete’s cost to produce each can is $0.85 inventory carrying costs per can are $0.10 per can.”(Supply Chain Management: A Logistics Perspective, P.74, Case 2.2, Pete’s) How will the company maintain its products freshness, advertise properly, keep up the supply, and still make profit? The highest demand for snacks including peanuts is during sports games, which includes the National Collegiate Athletic Association (NCAA) basketball playoffs.
Pete’s Peanuts When a new product gets released into the market the company has the following questions to look at to make sure that the operation runs smoothly. “What interactions and
References: Encyclopedia, S. E. (1993). Article. In The new encyclopedia Britannica (vol. 38, pp. 745-758). Chicago: Publisher. Lastname, F. (2003). Book title: Subtitle. Sterling, VA: Publisher Name. Newspaper article without an author. (1993, July 15). The Washington Post, p. A12. Wittkopf, B., & Shaw, M. E. (2003, fall). Article title from the journal. Journal Name, 43(2), 18-22. doi: 10:109.0932.9385.09 Supply Chain Management: A Logistics Perspective, P.74, Case 2.2, Pete’s http://www.choicesmagazine.org/2005-4/supplychain/2005-4-14-01.gif