LiPman Bottle Company

LiPman Bottle CompanyGroup 01- Sec ABhavesh Birla 1511016Manish KutarmarE 1511030Poovitha M 1511038Ravinder Singh 1511044Syed Ahmer Rizvi 1511060AgendaIntroduction to the FirmOperations Printing Operations & DescriptionPricing PolicyCurrent ScenarioProblem 1Problem IIProblem IIIConclusion

Lipman Bottle CompanyBottle Distribution Company Founded in 1909 Based out of Albany, New YorkActs as a Sales Rep for Bottle manufacturers 5-8 % discount off Regular PricesAdvantages for the customerSpecializes in printing labels -1 Vendor for 2 Outsourced activitiesExpert Advice and greater buying powerStocks an assortment of bottles from multiple manufacturers

Operations DesignLIPMANWarehouse/InventoryManufacturer 1Manufacturer 2Manufacturer 3Printing ShopCustomersCustomersCustom DecoratingCustom DecoratingBottle + LabelBottle + LabelBottle Bottle Problem 2Problem Statement:Price list for Albany area taking into account Mr.Lipmans goal of 30% profit marginSolution:Break even point = Variable Cost + Fixed Cost Variable Cost calculated from Question 1Fixed cost=106944/16000(from exhibit 1- w.r.t Machine hours) Break even point = (70%) of Total Price (since 30% profit margin)From this, Total price can be calculated.

Problem 3Problem Statement:Suggestions for products to be sold in New York- New JerseySolution:Decision based on- Gross margin and Shipping costsAssumption 30% margin as in Question 2Price is calculated using break even point (similar to question 2)Gross margin = Price Total Cost2 separation rounds highest gross marginsHence 2- separation rounds can be sold in New York-New Jersey

Sheet1New York-New JerseyBreak EvenProfit MarginGross Margin1 Round2 Round2 Oval1 Round2 Round2 OvalBottle size 0-1 28.955.9146.550.312.3923.9619.95Order size 5000-9999Bottle size 17-3254.0381.0471.680.323.1634.7330.72Order size 5000-9999Bottle size 0-1 24.1147.3938.020.310.3320.3116.3Order size 100,000-249,999Bottle size 17-32 50.373.5864.210.321.5631.5427.52Order size 100,000-249,999AlbanyBreak EvenProfit MarginGross Margin1 Round2 Round2 Oval1 Round2 Round2 OvalBottle size 0-1 29.2458.1548.790.341.7883.0869.71Order size 5000-9999Bottle size 17-3230.7461.1551.790.343.9287.3673.99Order size 5000-9999Bottle size 0-1 25.4950.6441.280.336.4272.3558.98Order size 100,000-249,999Bottle size 17-32 26.9953.6444.280.338.5676.6363.26Order size 100,000-249,999