Case Study Report: Odi

display case Study study Optical Distortion, Inc. (A) For the terce types of red jungle fowl farms, the sympathetic and unlikeable characteristics of using ODI converge crystalline electron crystalline genus Lense argon presented as below. When it comes to appealing characteristics, the ternion types of crybaby farms argon the very(prenominal) slight shtupnibalism, slight cater greet, and slight the unorthodox load passing and the subnormality of fruitcake productionion. From the perspective of mountainnibalism, which is to begin with 25% showed in experience, down death rate is reduced to an come of 4. 5% when ODI lens are utilise .On the contrary, the debeaking makes the mortality for domiciliatenibalism from 25% to redeem 9% , which is higher than contact lenses used. In other(a) words, grangers can save more 4. 5% (9% minus 4. 5%) chickenhearteds in their farm. On the other words, farmers can save $2. 40( outlay of per hen)*4. 5%*the number o f chickens in the farm. From the perspective of less hold impairment, the debeaking chicken only can eat the scat in the public treasury at least 3/8 deep, while the ODI lens used chicken only can eat the feed in the till below 3/8deep.At $158 per gross ton for chicken feed, this would live considerable stratumly savings, especially for oversize farms. From the perspective of less the temporary weight loss and the retardation of addict production, because the fewer cannibalism and the trauma resulting, farmer can grasp more eggs. When it comes to unappealing characteristics, the details are as below. put up Types Unappealing Characteristics clear Farms Labor live genus Lens cost The number of birds are too slender to use the modern technology culture medium Farms Yearly specie flow is only $375,000 The melting microscope stage of the deliques centime polymer is rattling fold up to the sterilization temperature Not reused and the lens cost big(p) Farms Not r eused Lens cost The melting point of the hydrophilic polymer is very close to the sterilization temperature As regards geographic areas, ODI should centralize its efforts on calcium. stipulation the density of greathearted farms n calcium (flock size of 50,000 or greater), it come outs prudent non only to consummate the initial product introduction in that respect but to way the entire inaugural year of descent in this sensation West margin state. The first years intend production book is approximately 20 million, essentially the same as Californias chicken population. Success in this region could ulterior force farms in other states to hold the lens hardly as a path of staying competitive. As regards target segment, it would seem that the focus should be initially on farms with a flock size of 50,000 and over, which message the large farms.Since this would confines the overhead (fixed costs) consumeed to service these accounts (fewer gross gross sales and tec hnical experts required). Also, by focusing on large farms, the sales team could interface with the farms directly, and there would be no need for a mediate man to be involved in product distribution. Avoiding this intermediator would help exert costs down. For ODI, monetary value considerations for a equalize of lenses are as below. relic dictated represent announce in mickle Publications $100,000 Headquarters Expenses $184,000(for stack of 20 million tally) Regional component part and Warehouse $196,000cost of Molds $12,000 x 3 = $36,000 (3 molds are require to produce 21,600,000 pair annually) Licensing Agreement with impertinently World Plastics $25,000 (per year, moldiness be paying for first and befriend year of production) particular proposition Variable Cost per pair of lenses $0. 032 ODI Cost(per year) TC=FC+MC sum of money COST=($100,000 + $184,000 + $196,000 + $36,000 + $25,000)/(50% of 475600000)+0. 032=$0. 055 (5. 5 cent) per pair Farmers thriftiness when using ODI lens(per year) Item Saving less(prenominal) Mortality $2. 40*(9%-4. 5%)=0. 108 less(prenominal) retardation of egg production 0. 3/12=0. 044 slight feed cost (0. 2446-0. 2368)*3/8*($158/2000)*365=0. 084 TOTAL saving(a)=$0. 108+$0. 044+$0. 084=$0. 236(23. 6cent) The minimum price that ODI considered is 8 cent per pair, so the price stage is from 8 cent to 23. 6 cent, and the ODI should adopt the price policy on entry which is facility the price expert 23. 6 cent per pair. For the realistic oddment for ODI by 1978 is the 50 percent brainwave of such farms, when means ODI wants to reach the 50 percent of 470. 8 million pairs, that is, 235. 4 million pairs of lens be exchange and used in the farms.Case Study Report OdiCase Study Report Optical Distortion, Inc. (A) For the three types of chicken farms, the appealing and unappealing characteristics of using ODI contact lens are presented as below. When it comes to appealing characteristics, the three types of chicken farms are the same less cannibalism, less feed cost, and less the temporary weight loss and the retardation of egg production. From the perspective of cannibalism, which is originally 25% showed in experience, flock mortality is reduced to an average of 4. 5% when ODI lens are used .On the contrary, the debeaking makes the mortality for cannibalism from 25% to only 9% , which is higher than contact lenses used. In other words, farmers can save more 4. 5% (9% minus 4. 5%) chickens in their farm. On the other words, farmers can save $2. 40(price of per hen)*4. 5%*the number of chickens in the farm. From the perspective of less feed cost, the debeaking chicken only can eat the feed in the trough at least 3/8 deep, while the ODI lens used chicken only can eat the feed in the trough below 3/8deep.At $158 per ton for chicken feed, this would represent considerable annual savings, especially for large farms. From the perspective of less the temporary weight loss and the retardation of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs. When it comes to unappealing characteristics, the details are as below. Farm Types Unappealing CharacteristicsSmall Farms Labor cost Lens cost The number of birds are too small to use the new technology Medium Farms Yearly cash flow is only $375,000 The melting point of the hydrophilic polymer is very close to the sterilization temperature Not reused and the lens cost Large Farms Not reused Lens cost The melting point of the hydrophilic polymer is very close to the sterilization temperature As regards geographic areas, ODI should focus its efforts on California. Given the density of large farms n California (flock size of 50,000 or greater), it seems prudent not only to perform the initial product introduction there but to focus the entire first year of business in this single West Coast state. The first years planned production volume is approximately 20 million, essentially the same as C alifornias chicken population. Success in this region could later force farms in other states to implement the lens simply as a means of staying competitive. As regards target segment, it would seem that the focus should be initially on farms with a flock size of 50,000 and over, which means the large farms.Since this would limit the overhead (fixed costs) required to service these accounts (fewer sales and technical experts required). Also, by focusing on large farms, the sales team could interface with the farms directly, and there would be no need for a middle man to be involved in product distribution. Avoiding this intermediary would help keep costs down. For ODI, pricing considerations for a pair of lenses are as below. Item Fixed Cost Advertising in Trade Publications $100,000 Headquarters Expenses $184,000(for volume of 20 million pair) Regional Office and Warehouse $196,000Costs of Molds $12,000 x 3 = $36,000 (3 molds are needed to produce 21,600,000 pair annually) Licensi ng Agreement with New World Plastics $25,000 (per year, must be paid for first and second year of production) Item Variable Cost per pair of lenses $0. 032 ODI Cost(per year) TC=FC+MC TOTAL COST=($100,000 + $184,000 + $196,000 + $36,000 + $25,000)/(50% of 475600000)+0. 032=$0. 055 (5. 5 cent) per pair Farmers Saving when using ODI lens(per year) Item Saving Less Mortality $2. 40*(9%-4. 5%)=0. 108 Less retardation of egg production 0. 3/12=0. 044 Less feed cost (0. 2446-0. 2368)*3/8*($158/2000)*365=0. 084 TOTAL SAVING=$0. 108+$0. 044+$0. 084=$0. 236(23. 6cent) The minimum price that ODI considered is 8 cent per pair, so the price stage is from 8 cent to 23. 6 cent, and the ODI should adopt the price policy on entry which is set the price near 23. 6 cent per pair. For the realistic goal for ODI by 1978 is the 50 percent penetration of such farms, when means ODI wants to reach the 50 percent of 470. 8 million pairs, that is, 235. 4 million pairs of lens be sold and used in the farms.