The business has invested a lot of time and cash but still reported losses in 2007 and 2009 and only a little profit in 2008. Sinofert buys and both manufactures urea it from external providers, as well as spreading it to the provinces.
Production costs, transportation costs, market prices, demand outlooks and manufacturing constraints are all known. An ideal distribution strategy using linear programming may be compared to the strategy derived by Sinofert management.
Considerable profitability increases are shown to be possible, although some problems are revealed by the optimization with contract constraints. It wants a fresh look and also a change in the way of conducting business, in the event the company would be to make its urea business profitable.
Sinofert Holdings Limited Urea Distribution Planning case study solution
PUBLICATION DATE: September 19, 2013 PRODUCT #: W13398-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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