Subject category:
Production and Operations Management
Originally published in:
2020
Version: 29-Oct-2020
Abstract
Eridanus Coffee Grange (ECG), headquartered in Seattle, Washington, has continued to experience financial growth over the past decade, thanks in large measure to the enduring strong demand for coffee throughout North America. ECG's management team is interested in producing and distributed three new specialty coffee blends in time for the upcoming holiday season. Cost management continues to play a significant role in ECG’s business model due to the ongoing turbulence in plantation bean prices. More specifically, coffee bean prices have seen a general downward trend over the past several years, which has resulted in increased economic hardships to the plantation growers. As a result, ECG's management has become increasingly sensitive to the environmental, ethical, and social issues associated with coffee bean production. Accordingly, Mr Stillwell, ECG's Chief Product Manager, wishes to develop a blending production strategy for its three new coffee blends that will satisfy current and future customers’ requirements at minimum total costs, while at the same time focusing on supporting long-term sustainability throughout the coffee bean growing community.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Time period
The events covered by this case took place in 2020.Geographical setting
Region:
World/global
Countries:
United States; Brazil; Vietnam; Ethiopia; Colombia
Featured company
ERIDANUS COFFEE GRANGE
Employees:
51-200
Turnover:
USD USD25 million
Type:
Privately held
Industry:
Coffee industry
Other keywords:
New product design; linear programming; prescriptive analytics; data management technology; environmental, ethical, and social issues; coffee bean production
Featured protagonists
- Ms Barbara Sloan (female), Vice President and General Manager
- Mr Bobby Stillwell (male), Chief Product Officer
Subject category:
Production and Operations Management
Originally published in:
2020
Version: 29-Oct-2020
Length: 12 pages
Data source: Published sources
About
Abstract
Eridanus Coffee Grange (ECG), headquartered in Seattle, Washington, has continued to experience financial growth over the past decade, thanks in large measure to the enduring strong demand for coffee throughout North America. ECG's management team is interested in producing and distributed three new specialty coffee blends in time for the upcoming holiday season. Cost management continues to play a significant role in ECG’s business model due to the ongoing turbulence in plantation bean prices. More specifically, coffee bean prices have seen a general downward trend over the past several years, which has resulted in increased economic hardships to the plantation growers. As a result, ECG's management has become increasingly sensitive to the environmental, ethical, and social issues associated with coffee bean production. Accordingly, Mr Stillwell, ECG's Chief Product Manager, wishes to develop a blending production strategy for its three new coffee blends that will satisfy current and future customers’ requirements at minimum total costs, while at the same time focusing on supporting long-term sustainability throughout the coffee bean growing community.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Time period
The events covered by this case took place in 2020.Geographical setting
Region:
World/global
Countries:
United States; Brazil; Vietnam; Ethiopia; Colombia
Featured company
ERIDANUS COFFEE GRANGE
Employees:
51-200
Turnover:
USD USD25 million
Type:
Privately held
Industry:
Coffee industry
Other keywords:
New product design; linear programming; prescriptive analytics; data management technology; environmental, ethical, and social issues; coffee bean production
Featured protagonists
- Ms Barbara Sloan (female), Vice President and General Manager
- Mr Bobby Stillwell (male), Chief Product Officer
Related
Subject category:
Production and Operations Management
Originally published in:
2020
Version: 29-Oct-2020
Length: 12 pages
Data source: Published sources