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Genetech 문제

The document outlines questions for a case study on Genentech's capacity planning for the drug Avastin. It provides background assumptions, including that Genentech's contract manufacturers can each devote two 10,000 liter tank lines similar to Genentech's own production. Demand forecasts have uncertainty of around 25% of expected demand. The questions address evaluating Genentech's production capacity, recommendations for additional facility size and location, the decision process for meeting Avastin demand, and how to respond to an unexpected excess capacity offer from another manufacturer.

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0% found this document useful (0 votes)
61 views2 pages

Genetech 문제

The document outlines questions for a case study on Genentech's capacity planning for the drug Avastin. It provides background assumptions, including that Genentech's contract manufacturers can each devote two 10,000 liter tank lines similar to Genentech's own production. Demand forecasts have uncertainty of around 25% of expected demand. The questions address evaluating Genentech's production capacity, recommendations for additional facility size and location, the decision process for meeting Avastin demand, and how to respond to an unexpected excess capacity offer from another manufacturer.

Uploaded by

cocoamy11
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CASE: Genentech – Capacity Planning

Use the following suggested questions when preparing your team’s case report.

For the assignment questions, assume the following:


A. Each of the two contract manufacturers can devote two 10,000 liter tank lines to Genentech
production, and Genentech hopes they will achieve yields similar to those at Genentech’s
own plants. These tanks will be fully utilized in the production of Rituxan and Herception.
B. Industry experts make demand forecasts for drugs like Avastin, but a number of sources of
uncertainty-yet to be determined dosage amounts and treatment regimens, unexpected
problems in the FDA’s approval process, unexpected success or failure of a competitor’s
product, and unexpectedly large or small consumer uptake-means that real demand will
depart from the experts’ forecasts. For purposes of our case discussion, assume that future
demand is distributed normally, centered on the experts’ forecasts, and with variation such
that one standard deviation is about 25 percent of the expected demand. For example, if
expected demand is 100 kg per year, then 85th percentile demand (about one standard
deviation above the expected demand) would be 125 kg per year.

[1] What is your evaluation of Genentech’s production capacity requirements given expected
demand in 2010 and 2015 for Avastin and Genentech’s other products as per Exhibit 3? Does
your evaluation change if Genentech wants to cover the 85th-percentile level of demand?

[2] Assuming Genentech decides to proceed with CCP3, what size production lines (tank sizes)
would you recommend? Why? What criteria should Ebersman use in selecting a location?
Why? Should Ebersman move forward with CCP3 now? (If not, when?)

[3] What recommendations would you make to Ebersman regarding the process he and his team
should use in deciding how best to meet the demands for Avastin?

[4] A contract manufacturing firm has had an unexpected reduction in demand for a drug it
produces. It is now offering to devote four 10,000 liter lines to the production of Avastin at
a price similar to Genentech’s existing contract manufacturing agreements. How should
Ebersman respond?

 Case presentations will be given in the class on December 7, 2020 and two voluntary teams
will be selected for answering two assignment questions per each team. (Continue)
 All teams should submit their own case report until 9 a.m. on the presentation day.
 The presentation teams properly prepare a Zoom environment before the class with the TA’s
help.
 Your participations in discussion are essential for catching the key insights of the case.

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