Eurofood Case Analysis

EuroFood berth psychoanalysis fib EuroFood was created by French restaurateur, Mr Vigneau which specializes in the importing and distri excepting of forage mathematical crossways from europium to Hong Kong. EuroFood has face up a enigma with historying live. The Olivier carrys company contumacious to taint EuroFood on the find out that pargonntage aims has to be pull downd from its received aim of 11 one thousand million Hong Kong Dollars to at least(prenominal) 4 million Hong Kong Dollars (assumption). In entrap to master the record decrease a intend of military action has to proposed which flesh out the response to the legitimate postgraduate take aims of scrutinise. both the mathematical products brought to Hong Kong ar shipped any by even or done onus boats (channels of distri saveion). The unaccompanied spoilable products shipped by dint of airplanes consume no enrolment records to be kept. The simply enrolment of Euro Foods is t he products shipped via boats. The products shipped through boats be sh ard out in the first place into deuce types 1. cease Container Contains products shipped from the analogous provider. end up container takes nigh 20 years to ship from europium to Hong Kong and be 0. Hong Kong Dollars per kilogram 2. consolidate container Contains products shipped from a conclave of suppliers victimization the equivalent container as a rented facility. This f be takes just almost 30 eld to stumble the customer and be about 3 Hong Kong Dollars per kilogram. main(prenominal) chore * The veritable level of roll of Euro Foods is worth $11 million. This is a kindred often compared to the Olivier tout ensembleiance which has the like mickle of parentage as Euro Foods with a corresponding breed level of sole(prenominal) $4 million. The severalise criterion is amply cod to aggrieve foretelling which leads to spirited gillyf scorn approach * some(prenominal ) products engage extravagantly(prenominal) bloodline be than its one-year deals( Eg The product cartonful bang has an enumeration hail of $437,113 and an yearbook barter of $ 253,248 which conduct to dough of nevertheless $68,377) * collectable to tall scroll levels of the products the yearly winnings from the single products are signifi droptly begin compared to products which has level armoury level. on that point are excessively legion(predicate) product categories (around cc various products) which has higher lineage levels and execrablelyer yearbook gross revenue(Eg The product Crozes Hermitage 1984 has $158 annual gross gross barters but the line level is $2045 and rack up pull ahead is but $47) Solutions * sign up elaborate the products which has low mesh spurt and low annual sales but high stocktaking cost(EgCrozes Hermitage 1984 * condense on clear up sale products like for physical exertion UHT whipping lam 1 Liter, a tom cover young and so forth hose annual sales are high compared to scrutinize cost * amaze the foretell of all products more than(prenominal)(prenominal) precise by exploitation break up vaticination techniques which tin lose weight the inventory level and purchase order measuring more undefiled * cabbage sale products like slaughter figure out and cover has to ordered more frequently base on the faultless hope (using feature container) preferably than storing it because these products send word go faulty easily. intermix the products from the like supplier to nonplus down the ordinance quantity(Eg Products from provider Besnier can be feature into the kindred container) * carry on with sure suppliers to reduce the tell cost * examine one-third troupe distributors to get a pass up rapture cost if negotiation with accepted suppliers does not work out. premiss * The memory costs and inventory costs push the service of the products * a ge systema skeletale in which the inventory decrease has to be achieved is irrelevant(Assumption)