Question

Prepare a​ product-by-value analysis for the following​ products, and given the position in its life​ cycle, identify the issues likely to confront the operations​ manager, and his or her possible actions. (a) Product Alpha has annual sales of 1,500 units and a contribution of $ 3,500 per​ unit; it is in the introductory stage. (b) Product Bravo has annual sales of 1,000 units and a contribution of $ 3,000 per​ unit; it is in the growth stage. (c) Product Charlie has annual sales of 4,500 units and a contribution of $ 1,500 per​ unit; it is in the decline stage.

Answer 1

Answer:

Product by value analysis is given below;

Explanation:

Highlighting the given information through table

                      PRODUCT Bravo   PRODUCT Alpha      PRODUCT Charlie

CONTRIBUTION:      $3000                  $3500                      $1500

ANNUAL SALE  :      1000 units             1500 units               4500 units           LIFE CYCLE       :      GROWTH               INTRO                     DECLINE

BRAVO:

By looking at the table and given information we can see Bravo is at growing stage the life cycle of product Bravo is growth. In this stage, the product is become stable, because the customers already know about the products. Thus, by add more on quantities to accommodate the raise in product demand.

ALPHA:

For product Alpha, it is at the introduction of life cycle, so for this product, it don't have any problem to produce in a large quantity if it get the good response from customers but if the response from customer is bad or not well, produce the product in the small quantity. Because, these products are new in market, not all customers know about it and also still need some changes. Additionally in this stage, should to do more on research, product development, process modification and enhancement and supplier development. In addition, the advertising to introduce or promote this product to customer must do it well.

CHARLIE:

Product Charlie at decline stage of life cycle and know this product will be end in the certain period from now. The products are not up to date, not suitable for this era (technology era). Thus, the customers turn to the competitor products because they come out with new and fresh idea. Therefore, this product must produce in the small quantity