Cook Composites and Polymer

1540 words 7 pages
Cook Composites and
Polymers Co.
Developing a Sustainable Supply Chain

Ong Kar Hian | U098481J
AY 2012/2013 | Semester 1

Cook Composites and Polymers Co. (CCP) were founded in 1990 and is a leading manufacturer of gel coats, unsaturated polyester resins, coatings resins and emulsions. The company prides itself most in producing high-quality, custom-designed gel coats. To produce high quality gel coats, CCP utilizes styrene as a cleaning agent for their mixing vessels because styrene performs admirably in reducing contamination. Currently, the company’s rinse styrene is collected and shipped to cement manufacturers as a source of fuel to fire their energy-intensive cement kilns. Alternatively, the company can opt for a waste exchange
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of 10-drum batches produced
Batches
1 Mixing Vessel:
1,000
15 Mixing Vessels:
15,000
* Assuming no batches pass in 1 round, 50% pass in 2 rounds and 50% pass in 3 rounds.
# Assuming one year equates to 52 weeks

Table 1: No. of 10-Drum Batches produced in North Kansas City

Traditional:
Pound of Styrene
500
510
520
530
540
550
560
570
580
590
600

Cost per pound of Styrene:
Conforming Batches
95.02%
96.98%
98.16%
98.88%
99.32%
99.59%
99.75%
99.84%
99.90%
99.94%
99.96%

$0.90
Revenue
$5,226.10
$5,333.90
$5,398.80
$5,438.40
$5,462.60
$5,477.45
$5,486.25
$5,491.20
$5,494.50
$5,496.70
$5,497.80

Revenue per Gallon:
Revenue Per Batch (550 Gallon):
Fixed Production Cost
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00

BPS Programme:
Pound of Styrene
500
510
520
530
540
550
560
570
580
590
600
Difference in Profit
Per Batch
Per 15,000 Batches

Cost per pound of Styrene:
Conforming Batches
95.02%
96.98%
98.16%
98.88%
99.32%
99.59%
99.75%
99.84%
99.90%
99.94%
99.96%

$0.30
Revenue
$5,226.10
$5,333.90
$5,398.80
$5,438.40
$5,462.60
$5,477.45
$5,486.25
$5,491.20
$5,494.50
$5,496.70
$5,497.80

Fixed Production Cost
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00
$4,125.00

$338
$5,070,750

Table 2: Optimal Amount of Styrene to be used in order to optimize cost and quality

$10

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