Question

QUESTION 1 (30) “Sales volume is argued to be a key factor in whether a business becomes a sustainable enterprise” With this in mind, conduct a viability study for the production of ice to be sold in plastic packs in your immediate and surrounding area, demonstrating whether this idea may lead to viable enterprise.

QUESTION 2 (20) Given the viability of the proposed venture in question 1), craft a business plan that amongst other things, will help you manage your business and help you to source financing for it.

QUESTION 3 (10) Maintaining the correct inventory levels is noted as one of the biggest challenges facing manufacturing/production.

https://cerasis.com/manufacturing-challenges/ accessed 05/08/2019

Given that the production of ice is not immune to such a challenge, discuss a control process that will help you ensure that the inventory levels required for the operation discussed in question 1) are kept at the correct level.

Answer 1

QUESTION 1 (30) “Sales volume is argued to be a key factor in whether a business becomes a sustainable enterprise” With this in mind, conduct a viability study for the production of ice to be sold in plastic packs in your immediate and surrounding area, demonstrating whether this idea may lead to viable enterprise.

Answer: Viability study includes below bullet points,

· Planning: Determine the Capital investment required to start and run the business. All type of capital investments (Tangible and Intangible) are to be determined. Tangible investment includes land for ice plant, Machine to process water and ice, transport vehicles for ice to costumer, packaging material (plastic packs) etc. Intangible like training, market development, product promotions etc. Apart from this calculation of business running cost for certain duration also should be calculated to prevent un-certain losses. The business will viable if pay back against all investment will be achieved in one year or whatever the best time duration.

· Situational analysis of Market: The situations of entering in market shall be determined. The seasonal and no-seasonal times also need to be considered.

· Collection of Secondary Information like mainstream costumer, environmental conditions, Government Taxes, City administrations etc.

· Demand Forecasting.

· Promotions/ business events/ referral advertisement.

QUESTION 2 (20) Given the viability of the proposed venture in question 1), craft a business plan that amongst other things, will help you manage your business and help you to source financing for it.

Answer: Business Plan for source financing: Below is the diagram explaining same,

QUESTION 3 (10) Maintaining the correct inventory levels is noted as one of the biggest challenges facing manufacturing/production.

https://cerasis.com/manufacturing-challenges/ accessed 05/08/2019

Given that the production of ice is not resistant to such a challenge, discuss a control process that will help you ensure that the inventory levels required for the operation discussed in question 1) are kept at the correct level.

Answer: Inventory Control Process:

The inventory controls shall be based on the forecasting of Market demand. The inventory control is main function of Production Planning and Control (PPC) department of business. The following will be the effective process to control inventory,

· Sales and Marketing Forecast: The Marketing team will see the leads and opportunity available and will ask PPC department to schedule raw and packaging material purchasing.

· The PPC department is to co-ordinate with the inventory store department to know to available stock and new purchase. Along with this PPC has to manage the on-going lots in production.

· Purchase department should able to frame deliveries from vendors as and when requirement basis. This way material handling and storage cost will be low.