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Case Study-Peanut Plantation

The logistics department played a key role in the introduction of a new cinnamon flavored peanut product for the Super Bowl. As the manufacturing department needed to ensure sufficient production capacity to meet estimated demand of 2 million cans, the logistics department was responsible for securing adequate supplies of raw materials, like cinnamon, to support the production schedule. The logistics and marketing departments also collaborated closely, with logistics providing input on product dimensions and distribution, while marketing led promotional efforts through television, billboards and giveaways. Finally, the finance department was concerned about costs and maintaining profit margins, directing that the product would need to remain profitable or be pulled from stores.

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254 views

Case Study-Peanut Plantation

The logistics department played a key role in the introduction of a new cinnamon flavored peanut product for the Super Bowl. As the manufacturing department needed to ensure sufficient production capacity to meet estimated demand of 2 million cans, the logistics department was responsible for securing adequate supplies of raw materials, like cinnamon, to support the production schedule. The logistics and marketing departments also collaborated closely, with logistics providing input on product dimensions and distribution, while marketing led promotional efforts through television, billboards and giveaways. Finally, the finance department was concerned about costs and maintaining profit margins, directing that the product would need to remain profitable or be pulled from stores.

Uploaded by

isabella ford
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case study- Peanut Plantation

1. What interactions needed to take place among the marketing, manufacturing,


logistics, and finance departments? Explain the logistics department’s role in
the introduction of the new product.

The interaction between marketing, manufacturing, logistics, and finance departments

Manufacturing:
A classic interface between logistics and manufacturing relates to the length of the
production run. Manufacturing economies are typically associated with the long
production runs with the infrequent manufacturing line setups or changeovers. In
Peanut Company, the demand for the two days preceding the Super Bowl was
estimated to be 2 million 18-ounce cans. Manufacturing capacity for the new product is
500,000 cans per week. Therefore, the manufacturing need to make sure that the
material is meet the production schedule.

Marketing:
The interaction between logistics and marketing is the physical distribution or
outbound side of an organization’s logistics system. Logistics manager offers input
when decided on the physical dimension of new products. Peanut marketing
department decided to launch the new product before the Super Bowl. Peanut
Plantation Company also used promotion strategy to promote their new product. The
firms often spend millions of dollars on advertising to promote the product. For
example, Peanut Company is using advertisement to promote the new product on
television, billboards and newspaper. Peanut Plantation Company also making
promotional effort to stimulate the sales and organizes the activity to attract more
customer buy the product such as free trip.

Logistics:
Logistics manager has also responsible for the inbound movement and storage of raw
material on supply side. The logistics manager needs to ensure that available
quantities of peanut products that is cinnamon flavor are adequate to meet the
schedule.   The Peanut Company estimated that first week can meet the demand for
the new product in one month before the introduction.

Finance:
Peanut’s finance department was concerned that heavy promotion and high build-up
of inventories would estimate almost all of the profit Peanut would make on each can.
Their directive to the product manager was that the product had to maintain its profit,
or it would be pulled from the market.

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