RANGER CREEK BREWING AND DISTILLING Harvard Case Solution & Analysis

RANGER CREEK BREWING AND DISTILLING Case Solution

INTRODUCTION

This case about the company Ranger Creek Brewing and Distilling.This document includes the potential operational changes that may be required in the period from 2014 to 2019, this report is also accompanied with the sales forecasts from 2014 to 2019 along with the total capacity of Beer and Spirits that can be manufactured in the plants and the bottlenecks,which will be encountered during this time. Furthermore, the report also addresses the issue of investment in assets to support the growth on hand and the discussion on the issue whether it is logical to invest funds in assets to increase the capacity of beer and spirits manufacturing. Lastly, the report also discusses the common steps in the process of beer and spirit manufacturing in the shape of process flowchart. This document also includes the capacity plan; the equipment that might be needed in the coming years will be of supreme importance in order to avail the opportunities of meeting demand and to make profits on the sale of beer and spirits.

USE AN APPROPRIATE METHOD TO FORECAST SALES FOR BEER & SPIRITS FOR 2014-2019.

The forecast plan is determined for the years from 2014 to 2019 with the help of standard deviation in the previous years and through the average sales from 2011 to 2013.In both cases of beer and spirits, the increasing or decreasing trends were ignored in the production of sales forecasted schedule. However, standard deviation and average approach were instead taken to formulate the forecast for the coming years and to predict sales more effectively in both cases because standard deviation figure predicts that sales can increase or decrease by the same number and average was taken as the starting point.If we look at the sales forecasts, it appears that after incorporating the standard deviation and average data in the actual data of 2013, the sales increase in the later years, which also predicts that company needs more resources in order to meet the demand on hand to exploit opportunities in the profitable manner. Furthermore, the sales forecast will also help management at Ranger Creek Brewing and Distilling to interpret sales in advance, in a more proactive manner, which will in turn help them utilize resources more effectively.The quality of forecast will be dependent on the availability of historic data and its reliability in the use of forecasting process.

Exhibit-1

  2014 2015 2016 2017 2018 2019
Beer 3,500 2,167 3,425 2,167 3,425 4,683
Spirits 2,800 3,907 5,015 5,015 3,610 5,015

SHOW COMMON IN BEER AND SPIRITS MANUFACTURING.

Exhibit-2

The common steps mentioned above the beer and spirits are fermented, but beer is not distilled.The other difference between the manufacturing of these two types of drinks is the process of maturation, where the whisky is matured for 3 years in wooden caskets and before that, it cannot be called a whiskey.In some parts of Scotland and America, the process of mashing the seeds and basic raw material is almost same, these areas also suggests that these steps can be used to bring down the overall cost of manufacturing of the company like Ranger Creek. During these early stages of manufacturing, the material is stored in the same storing capacity and thus, it helps to reduce cost of holding and storing the fermented or mashed liquid material.................

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