Delta Synthetics Essay Example | Topics and Well Written Essays - 1750 words

Delta Synthetics - Essay ExampleBoth the three plant produce a capacity of 5.5 meg kilograms per year merely when the annual closure and maintenance take place, the companys capacity of production is 5 billion kilograms per year.The company wants to introduce a new product and so it has to improve the capacity of its production. Within sextuplet years, it is expected that the production capacity will increase and so the forecast and planning has to be done. The forecasted precede lay down that the result for the britelene demand is falling but it is not belike to go to zero but it is going to r from each one a residual demand level .From the year 1996 to 1998, it is only the britelene that was produced. There is a reduction in the demand of the product due to some resources which could have been used to promote the sales was diverted in the production of the new substance. In the year 1999, the company started producing Briton. The production of this product direct to the decrease in the demand of brutlene while the Briton continued to increase in its demand as the years go by. In the year 2002, the demand of bretlene is 10 jillion kilograms while that of Briton is 29 billion kilograms. The total sales of both the products remain the akin from the year 2002 to 2002 whereby in 2000, 39 trillion kilograms were sold, in 2001 38 zillion kilograms were sold while in 2002 the total was 2002 million kilograms. The results are reflected in the table below.YearBrutlene in million kilogramsDifference in million kilograms between successive years Briton in million kilogramsDifference in million kilograms between successive years check of the products in million kilograms.199917330200013(4)161339200111(2)27938200210(1)29239The total remains the same and so the likely trend of total sales is likely to remain the same or show a negligible difference. Since the sales of brutlene are reducing and it should have a reserve level of sales, the guidance for the r eduction in sales is likely to be at a level of one million kilograms per annum. .Due to this, the value of sales of brutelene for the following six years from 2002 is as follow. In 2003, the sales are likely to be 9 million kilograms. In 2004,the likely sales is 8 million kilograms .In 2005,the likely sales is 7million kilograms. In the year2006,the likely sales is 6 million kilograms. in the year 2007,the likely sales is 5 million kilograms while in 2008,the likely sales is going to be 4million kilograms.For the Briton, the sales in the next six years are obtained by the difference in total sales which is constant for each year from the predicted sales of each year. In the year 2003, the likely sale of Briton is 30 million kilograms. In the year 2004, the likely sales are 31 million kilograms. In the year 2005, the sales are likely to be 32 million kilograms. In the year 2006, the likely sales is33 million kilograms.. In the year 2007, the likely sales is 34 million kilograms .In the year 2008, the predicted sales is likely to be 35 million kilograms.To obtain the required capacity, several plans have to be considered. These are the financial plan, trade plan, operations plan, risk management plan and the management plan. Eric Versuh, John Wiley and sons (1999).In the financial plan they should tactile sensation for more capital which can be obtained from borrowing from banks, ploughing back of the profit obtained from the