Genentech–Capacity Planning Harvard Case Solution & Analysis

Forecast Avastin Demand

genentech capacity planning case solution

genentech capacity planning case solution


The forecasting of the Avastin's demand is depicting the best exposure on the revenue basis as well as the disease attached to it. It clarifies the state of the production quantity/ volume of the product. It's totally based on the assumption on which practical market based. It also depicts the clinical stages which are the testing for the demand of the Avastin.


Details of the Forecasting Avastin Demand with proper support are annexed with Appendix A, which is a clarification with the best estimation on the judgmental basis with the following assumptions:

  • Taking an average Avastin forecast demand as respect to case

And best judgments to all case Indications.

  • Penetration Rate assumed at on average practical pharmaceutical.
  • Assume that there is change in annual demand 0.3 grams per dose.
  • Colorectal Cancer Treatment is assumed at about 90% efficiency.
  • Clinical trial Stage assumed for lung  90%, Breast 75%,
Kidney 75%, Pancreatic 90%, Another 80% equally respectively.
  • With the same kg quantity equally distributed is assumed.
  • Assume that there are changes in production, which reduced of grams per dose which is 0.6
  • There are changes in dues per year, which reflects in the total kg.
  • With the light there changes of yellow marking
  • With changes sky blue changes with green mark

These are the main streams for the calculation basis with analysis and strong addition of the supportive details. One of the main criteria of the forecasting is to presence with the proper justification of your market exposure.


Estimation of the Avastin Demand is being a plug-in because of the criteria future benefits for the company and earning a good yield of the product. All the data will be belonged with a forthcoming market acquaintance which relates to many possible chances.

Estimates Overall Capacity


It has many capacities as utilize the production volume and criteria as mentioned in the analysis which are annexed with appendix B. The company has to look out many more procedure criteria which effects on the capacity of the production line and have many advantages also attached to it. It's totally based on the best estimate with the relevance of the case material


Details of the production, which based on the following as mention below:

  • Assumed that production line CCP3 will go on working and has a 25,000 liter
  • Assumed that there is a change in a batch of 16 equally respectively
  • Avastin Demand assumed as calculated in 2005, 2010,2015 respectively as per estimation
  • Standard deviation State as 30% assumed as predict company performance

It totally depicted the picture of the forecasted production line and its assumption basis because research analyst doing the different aspects and analysis is performed with market practical exposure and measures


The production line has the capacity which is having the advantages of Avastin Demand and other cancer indication which affects will better production line. It also has better exposure standards in the line of the CCP2

Feasibility of New Extension Production Line


Yes, we should move to the extension plan, because it's giving a good yield to it. The company has to think about the social and the mentality of the employee to do the work. It may be work load for the employee and new employee need some training purpose as per the procedure of the product development. On the assumption and case base tank size will be the same as CCP2. The assumption is given below which on appendix C is mentioning.

  • Assumed that Investment Cost will be $600
  • Assumed that Employee Cost will be approx. $600
  • The sale is based on 250kg price 750 and assumed it sale 1000 kg on a year

As per the analyze its signal is green for this project, but on social ground the production is not feasible.


It should move forward near to the CCP2 which help with lots of parts in developing the production Line and it’s setting the capability. There are many possibilities which you should move on it.
`If the manufacturing contract is not feasible, then analysis shows that it will move to the same production line with low complexity and which drives into the sentiments of previous calculation of the enterprise. The production will move to gain back its basic requirements. It has also many more possibilities regarding basic criteria of the production ..................

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While promoting complex clinical approval process in the next two to three years for a family of new cancer drugs, Genentech must develop a long-term plan of the main class of potential new products cancer. Adding to the complexity and uncertainty is the fact that the lead time for planning, building and certifying a new $ 600 million plus production scale facility for five years. In addition, ensuring that the best process is included in a new plant make a challenge for David Ebersman, senior vice president of product operations, and his management team a complex one. Frames questions Ebersman and his team face and sets out the approach to date.
Genentech - Planning, Table answer Key (606-714) maintains a table addition to this case, "Hide
. by Daniel C. Snow, Stephen S. Kolesnik, Alison Berkley Wagonfeld Source: Harvard Business School 27 pages. Publication Date: November 22, 2005. Prod. #: 606052-PDF-ENG

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