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# Delta Synthetics - Essay Example

## Extract of sample Delta Synthetics

Both the three plant produce a capacity of 5.5 million kilogram's per year but when the annual closure and maintenance take place, the company's capacity of production is 5 million kilogram's per year.
The company wants to introduce a new product and so it has to improve the capacity of its production. Within six years, it is expected that the production capacity will increase and so the forecast and planning has to be done. The forecasted result show that the result for the britelene demand is falling but it is not likely to go to zero but it is going to reach 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 led 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 million kilograms while that of Briton is 29 million kilograms. The total sales of both the products remain the same from the year 2002 to 2002 whereby in 2000, 39 million kilograms were sold, in 2001; 38 million kilogram's were sold while in 2002 the total was 2002 million kilograms. The results are reflected in the table below.

Year
Brutlene in million kilogram's
Difference in million kilograms between successive years
Briton in million kilograms
Difference in million kilograms between successive years
Total of the products in million kilograms.
1999

17

3

30
2000
13
(4)
16
13
39

2001
11
(2)
27
9
38
2002
10
(1)
29
2
39

The 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 focus for the reduction 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 next six years from 2002 is as follow. In 2003, the sales are likely to be 9 million kilogram's. In 2004,the likely sales is 8 million kilograms .In 2005,the likely sales is 7million kilogram's. 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 kilogram's.
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 kilogram's.. 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, marketing plan, operations plan, risk management plan and the management plan. Eric Versuh, John Wiley and sons (1999).

In the financial plan they should look for more capital which can be obtained from borrowing from banks, ploughing back of the profit obtained from the ...Show more

## Summary

Delta synthetics fiber is a company that is involved in the production of man made fibres.It is involved in the manufacture and sales of britlene and britlon which is used in the manufacture of clothes, industrial use such as in making of tyre chords and in the manufacture of thermal and electrical insulators due to the high wear resistance…
Author : cruickshankgrov
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