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Delta Synthetics - Essay Example
Author : cruickshankgrov
Pages 7 (1757 words)
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…
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. ...