Immune system treatment

Assignment Help Business Management
Reference no: EM131418168

Smitheford Pharmaceuticals is facing other issues. The company had not kept up with modern manufacturing technology and was in the process of modernizing the injectable manufacturing facilities in Pueblo and Colorado Springs. There were several modernizing scenarios under analysis. Perform cost-benefit analysis calculations for 2 equipment scenarios. The data are provided below.

Scheduling the various manufacturing operations has become more complicated. In the 1990s, the Pueblo plant expanded tremendously, based on forecasts for the growth of a promising osteoporosis medication, Osto54. The facility doubled in size, mostly with tanks and processing equipment. Osto54, however, caused heightened enzyme levels in the liver and led to seven deaths in the elderly because of drug interactions. Smitheford faced the loss of millions of dollars in liability suits and had excess intermediate manufacturing capacity in Pueblo.

Two years ago, a new immune system treatment, Ultamyacin, was discovered by a Smitheford researcher. The drug could be manufactured at the Pueblo facility for the bulk manufacturing, but the final manufacturing steps could be made in Puerto Rico for final purification and then sent to Fort Collins for final manufacturing into sterile bottles for injection.

Smitheford leadership has narrowed the decision making down to 2 options. The first is a higher technology option in one location, and the other is a lower technology option in several locations.  This is a min of 1000 words


High Technology Centralized Location

Low Technology Cecentralized

Annual Fixed Cost

$620,000

$110,000

Variable Cost/Product

16.31

18.89

Estimated Annual Production



(in number of products) Year 1

100,000

100,000

Year 5

170,000

170,000

Year 10

225,000

225,000

Use applicable business formulas to determine costs for both options.

Consider the following questions:

  • Which is the lead cost alternative in Years 1, 5, and 10?
  • How much would the variable cost per unit have to be in Year 5 for the automated alternative to justify the additional annual fixed cost of the automated alternative over the manual alternative?
  • Determine what other factors should be considered when deciding the following:
  • When to centralize manufacturing
  • When to opt for higher technology options

Reference no: EM131418168

Previous Q& A

  List observations about the type or quality of food purchase

Read the posts of classmates. Reflect on challenges a family with $40 a week to spend on groceries faces. Consider what locations (Place) might be best for this target market. Consider Price objectives and strategies of retailers who address this ..

  What makes the better job descriptions more effective

What makes the poorly written job descriptions weak? What makes the better job descriptions more effective? Respond to each question with a minimum of 250 words.

  What is the expected number of major earthquakes

Use the Poisson model to approximate the probability that there will be at least one major earthquake in the next 1000 days.

  Build power within an organization

Explain power bases. How does one build power within an organization? How are power and politics related within an organization?

  In your opinion what competencies are needed to succeed

In your opinion, what competencies are needed to succeed? What characteristics of an applicant would you look for if you were a HR manager

  Describe the characteristics of the minority magazines

Analyze ALL the ads (number of ads, percentage of what product category, models of different race/ethnicity, major/supporting/marginal role, business/home/outdoor setting, skin tone, gender, celebrity, etc). Be sure to use tables and charts to com..

  Prepare a digest of the deposition

Prepare a digest of the deposition for Mr. White, summarizing the key answers and information that you can obtain from that deposition.

  Whats probability that no one will arrive in next 1o minutes

What's the probability that no one will arrive in the next 10 minutes?- What's the probability that 2 or more people arrive in the next 10 minutes?

  Building coherent paragraphs

Your Task:  Use the following facts to construct a coherent paragraph with a topic sentence and appropriate transitional expressions in the supporting sentences.

  Three-month shutdown period

Ashley expected the store to earn a net income of $30,000 during the three-month shutdown period if the loss had not occurred. During the shutdown period, there were no revenues, and Ashley had continuing expenses of $10,000. How much will Ashley ..

Reviews

Write a Review

 

Similar Q& A

  Authorities on instructional design typically suggest

Authorities on instructional design typically suggest that materials be prepared for individualized use by learners before they are equipped for group-oriented

  The north american industry classification system

The North American Industry Classification System (NAICS) is most accurate?

  Understanding financial statements

Write a 750- to 1,050-word paper evaluating the financial health of a company. Highlight the importance of industry comparisons and trends.

  Why do you think these are the best ways to analyze market

What are the best tools to use in this situation? Provide a brief summary of at least 2 of these tools. Why do you think these are the best ways to analyze the market? How will you use these tools in your plan?

  What is the definition of a disability

What is the definition of a disability, and how does it differ from an illness? Your response must be at least 75 words in length.

  Define social marketing

Define social marketing and give an example of this technique.

  Advice to a prospective expatriate

What advice would you give to a prospective expatriate regarding questions to ask before accepting the assignment?

  Affirmative action and compensatory justice

You have been asked to give a presentation to an Introduction to Business class on affirmative action and compensatory justice. Write a defense of both affirmative action and compensatory justice.

  Find the most economic batch quantity

Find the most economic batch quantity of a product on a machine if the production rate of that item on the machine is 200 pieces per day and the demand is uniform at the rate of 100 pieces per day. The ordering cost is Rs. 200 per batch and the co..

  What is the role of sponsorship on behalf of companies

What is the role of sponsorship on behalf of companies/ brands? In answering the question, you are asked to consider sponsorship as a multi-stakeholder platform. Use examples to illustrate your understanding

  Create organizational improvement outcomes

OL 500- Create organizational improvement outcomes that are a direct remedy to the organizational issues. Apply human behavior theories and concepts and validate your recommendations with supportive research evidence.

  Organizational development southwest airlinessouthwest has

organizational development southwest airlinessouthwest has long been the most profitable u.s. airline even though its

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd