The pet bottle manufacturing industry is a significant part of the global packaging industry
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- RETURN OF INVESTMENT PARTICULARS
- 6.065% DEBT SERVICE COVERAGE RATIO
- 10,00,414 Debt
- 13,25,775 Average DSCR 0.754
- CASE STUDY TITLE
- OBJECTIVES : To increases the production capacity To meet the market demand. CONSEQUENCES
- Damage the customer relationship
- Investment in production capacity expansion
- Limited space: Lack of optimizing the existing space Supply chain constraints
| INTREST RATE OF RETURN
NPV1 =Rt/(1+r)^t = 27,81,166/(1+10/100)^1 =2528287.27 NPV2 = Rt/(1+r)^t = 27,81,166/(1+15/100)^1 = 24,18,361.74 IRR = R1%+((NPV1(R2-R1)%/NPV1-NPV2) = 10%+(( 2528287.27(10-15)%)/2528287.27-2418361.74) = 10%+ (126414.36/109925.53) = 10%+1.15004% = 115.004 RETURN OF INVESTMENT
DEBT SERVICE COVERAGE RATIO
BALANCES SHEET
PROFITABILITY RATIO GROSS PROFIT RATIO = Gross profit / Sales * 100 = 12,35,494/135,72,166* 100 = 9.103% NET PROFIT RATIO =Net Profit / Sales *100 = 7,71,148/35,72,16 * 100 =5.681% ACTIVITY RATIO INVENTORY RATIO = Cost of Goods Sold/Average Inventory Cost of good sold = Sales – Gross profit = 135,72,66 - 12,35,495 = 12,336,671 =123,36,671/85,33,785 = 1.4491 CASE STUDY TITLE: INSUFFICIENT PRODUCTION CAPACITY IN SUMMER SEASON INTRODUCTION: The BMR PET industry is capable of producing a range of products with varying unit sizes, from 250ml to 2l. During summer season there tends to be a production shortage specifically of 500ml and 1l bottles. PROBLEM IDENTIFICATION The primary problem is the lack of sufficient production capacity to meet the demand for PET bottles. It also causes the disruption in supply chain. OBJECTIVES: To increases the production capacity To meet the market demand. CONSEQUENCES: Delayed product delivery: It can cause delay in product delivery. Missed business opportunities: Insufficient can leads to missed the business opportunities during the summer season. The high demand for PET bottles during this period of summer season. Damage the customer relationship: Where the manufacturer fails to meet the summer demand due to insufficient production capacities, it leads to dissatisfaction of customer. FINDINGS AND ANALYSIS: Increases production cost: Insufficient production during summer in pet industry leads to increases the production cost. Manufacturers may need to expedited shipping, overtime wages or outsourcing production to meet the demand. Investment in production capacity expansion: PET manufacturer can invest in production capacity expansion. This may involve acquiring new machinery, increases the production line or expanding the facilities. Barriers for adopting the insufficient production in pet manufacturing: Capital investment: Company faced the most major barriers in capital investment during expand the production capacity. Limited space: Lack of optimizing the existing space Supply chain constraints: Procuring the raw materials and components necessary for increases the production. RESULTS AND OUTCOMES: Supply shortage: It can lead to unmet the customer demand and loss the sales opportunity. Reduced Downtime: The streamlined processes and optimized equipment maintenance practices resulted in reduced equipment breakdowns and downtime. This led to improved operational efficiency and increased production uptime. Loss of market share: Insufficient production leads to a loss to market share. Competitors with sufficient production capacity can capture a large market share by meeting the customer demand. CONCLUSION: During the summer season, there is a problem of insufficient production capacity for pet bottles. In order to that issues it is crucial effectively demand forecasting become essential to proactively plan the production capacity for both 500ml and 1l bottles. This will enable us to maintain the optimal inventory levels and ensure sufficient stock. This result to meet the market demand in time. CONCLUSION This study work was conducted to learn the working and manufacturing Process of PET bottle at B.M.R PET Industry, Karaikal. The report starts with the brief introduction to the Pet Industry followed by the details of PET bottle, manufacturing process, Human resource management, environment sustainability of PET and marketing and sales strategy of B.M.R PET Industry where we underwent Industrial Visit. The experiences during the Industrial Visit allowed me to develop my skill. Page | Download 62.49 Kb. Share with your friends:
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