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Steelworks

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Submitted By dareme619
Words 1687
Pages 7
1. Based on the spreadsheet data, how would you characterize Steel Works’ products? What about Steel Works’ customers? Given your answer and the information in the case what does this suggest?

Company Profile:

Steelworks Inc., from the case produces seven different types of products from both specialty and custom products. From the case it’s evident that the specialty product contribute to 67% of the revenue produced by the company. The specialty products ideally deal with small business customer whose annual business range is less that 1 million. The custom division produces products for large business customers and its essential that they hold stock in the inventory throughout the year to cater the needs of the customers. From the case its also mentioned that Steelworks Inc. have been spending more money on the stocks in the inventory. The products produced by the company are

Durabend R10- Specialty
Durabend R12- Specialty
Durabend R15- Specialty
Duraflex R10- Custom
Duraflex R12-Custom
Duraflex R15-Custom
Duraflex R23-Custom

From the limited information we have from the case study, Duraflex R23 is a custom product made for single customer. Its been produced at one of the three plants located near one of the three R&D centres. Revenue and Sales:
From the Excel sheets its clear the Durabend R15 and Durabend R12 have high revenue on the sales of the company. Its also clear from the sheet that the production and selling price of the products are in good ratio so that if the company sells large amount of products on this line, it will be a huge revenue for the company.

Durabend R12 0.25$ 1.00$
Durabend R15 0.27$ 1.03$

Demand:
The demand is also high for the product line of durabend R12 and R15. Calculating the average month demand for the two product line from the spreadsheet. | Price | demand | DB R10 | $1.15 | 15.58333

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