Ed karnes warning label expert
Potential risks if demand for the crates in the Manufacturing the crates will expose DDL to Seat belts are recommended over crates by Shipping rates, duty and possible delays.
Shipment amounts and risks of import tax, Inventory control and timing of when product Sales repairs and maintenance will be more That the company’s reputation is not at risk.
#Ed karnes warning label expert full#
Full control of the crates quality will ensure Manufacturing the Dog Crates Advantages Disadvantages The vision of DDL is not met with the production and sale of crates.Seat belts are a saferĬhoice and there is less risk of lawsuits. Of possible injuries a dog can endure within a crate if there was a car accident. Seat belts are currently recommended over crates by the National Pet Passenger Safety Board because.Diversifying the product line to include dog crates may enable DDL’s chances to grow as a companyīecause there could be an opportunity to sell crates not only to existing customers, but to new potential.There could be a potential increase of profit if DDL wereĪble to maximize the production of crates to meet the demand. There is a growing demand for dog crates.Annually, this will be $10,000 cheaper to produce crates. The cost to manufacture the crates is $195 per crate, which is less than the $197 per crate Issue #2 Analysis: Dog Crates – Manufacture VS Outsourceīased on the calculations in the Excel workbook, manufacturing one crate is $2 cheaper than Modifications to the machine would have toīe made to produce Titanium, resulting in a Steel, suggesting that there is an established The competition of DDL are already selling Titanium is known to be a more sustainable DDL would have to reduce its selling price to Labor time being down by 10 to 20 minutes. Significantly reducing, specifically in the direct There is protentional for an increase to your Working with steel is easier to work with and Qualitative Analysis: Opportunities of switching to steel Advantages Disadvantages Using Titanium in your seat belts also gives you differentiation in the market. Given the fluctuation in the price of steel and from business perspective, it makes sense to stay The decrease in costs ranges from 20% toĤ2%. Worst-case being $115 per unit (see calculations in Excel). Significant cost reduction in both scenarios, with the base-case scenario being $94 per unit and the Unfortunately, due to the prices of Steel potentionally increasingīy 20% next year, the worst-case contribution margin would be $62 per unit produced. Sensitivity analysis in the calculations. The contribution margin would increase to $83 per unit, in best-case scenario as done in the If you were to replace Titanium with Steel, there is a protentional that Per the calculations, to produce the seat belts using Titanium would have a Referring to the calculations in the Excel worksheet, it shows that DDL will increase profit if they chose to
Issue #1 Analysis: Is steel or titanium more cost effective?