Tropic Industrials Ltd. is a cement manufacturing company located in Old Harbour St. Catherine Jamaica. The manufacturing plant covers over 2000 Hectares of land and boasts a modern electronically powered processing plant which when running at full capacity can produce approximately 78000 metric tons of the company's number one selling product “Quick Dry” bag cement at the end of an eight-hour shift. Once the cement has been manufactured it is then packed into bags and placed onto conveyor belts and then transported to a centralized warehouse on the plant. Once sorted the finished goods are then distributed by truck to the company’s three main distribution depots located in Kingston, St. James, and St. Ann. Quick Dry cement is primarily manufactured for local consumption which includes the housing, commercial building, and road construction sectors. In response to a surge in the growth of the local housing and construction sectors, Tropic Industrials Ltd has initiated plans to expand its operations and distribution with the intention of increasing the plant's capacity by 50% over the next three years. The main anticipated outcome of this expansion is to rectify inventory and distribution challenges that are currently affecting the company. These challenges range from distribution depots not being replenished on time to meet demand as well as inconsistencies in trucking services which impact customer service delivery. Therefore a significant overhaul of Tropic Industrials Ltd operations is now needed to synchronize the rising demand for Quick Dry Cement with adequate supply. The image attached shows the weekly demand patterns for the Quick Dry distribution depots. Question :  Illustrate and explain with the aid of an appropriate graphical representation a demand plan which Tropic Industrials Ltd can apply to synchronize demand with supply for their leading product Quick Dry Cement.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Tropic Industrials Ltd. is a cement manufacturing company located in Old Harbour St. Catherine Jamaica. The manufacturing plant covers over 2000 Hectares of land and boasts a modern electronically powered processing plant which when running at full capacity can produce approximately 78000 metric tons of the company's number one selling product “Quick Dry” bag cement at the end of an eight-hour shift. Once the cement has been manufactured it is then packed into bags and placed onto conveyor belts and then transported to a centralized warehouse on the plant. Once sorted the finished goods are then distributed by truck to the company’s three main distribution depots located in Kingston, St. James, and St. Ann. Quick Dry cement is primarily manufactured for local consumption which includes the housing, commercial building, and road construction sectors.

In response to a surge in the growth of the local housing and construction sectors, Tropic Industrials Ltd has initiated plans to expand its operations and distribution with the intention of increasing the plant's capacity by 50% over the next three years. The main anticipated outcome of this expansion is to rectify inventory and distribution challenges that are currently affecting the company. These challenges range from distribution depots not being replenished on time to meet demand as well as inconsistencies in trucking services which impact customer service delivery. Therefore a significant overhaul of Tropic Industrials Ltd operations is now needed to synchronize the rising demand for Quick Dry Cement with adequate supply. The image attached shows the weekly demand patterns for the Quick Dry distribution depots.

Question : 

  1. Illustrate and explain with the aid of an appropriate graphical representation a demand plan which Tropic Industrials Ltd can apply to synchronize demand with supply for their leading product Quick Dry Cement.
Metric Tons
40000
35000
30000
25000
20000
15000
10000
5000
0
Order Volume
Total Orders
Quick Dry Weekly Demand
Kingston depot St. James depot
36660
291
25740
204
St. Ann depot
15600
125
350
300
250
200
150
100
50
0
Transcribed Image Text:Metric Tons 40000 35000 30000 25000 20000 15000 10000 5000 0 Order Volume Total Orders Quick Dry Weekly Demand Kingston depot St. James depot 36660 291 25740 204 St. Ann depot 15600 125 350 300 250 200 150 100 50 0
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