Case Study Report: Odi

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Case Study Report: Optical Distortion, Inc. (A)

For the three types of chicken farms, the appealing and unappealing characteristics of using ODI contact lens are presented as below. When it comes to appealing characteristics, the three types of chicken farms are the same: less cannibalism, less feed cost, and less the temporary weight loss and the retardation of egg production.

From the perspective of cannibalism, which is originally 25% showed in experience, flock mortality is reduced to an average of 4.5% when ODI lens are used . On the contrary, the debeaking makes the mortality for cannibalism from 25% to only 9% , which is higher than contact lenses used. In other words, farmers can save more 4.5% (9% minus 4.5%) chickens in their farm. On the other words, farmers can save $2.40(price of per hen)*4.5%*the number of chickens in the farm.

From the perspective of less feed cost, the debeaking chicken only can eat the feed in the trough at least 3/8” deep, while the ODI lens used chicken only can eat the feed in the trough below 3/8”deep. At $158 per ton for chicken feed, this would represent considerable annual savings, especially for large farms.

From the perspective of less the temporary weight loss and the retardation of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs.

When it comes to unappealing characteristics, the details are as below. Farm Types| Unappealing Characteristics|
Small Farms| Labor cost| Lens cost| The number of birds are too small to use the new technology| Medium Farms| Yearly cash flow is only $375,000| The melting point of the hydrophilic polymer is very close to the sterilization temperature| Not reused and the lens cost| Large Farms| Not reused| Lens cost| The melting point of the hydrophilic polymer is very close to the sterilization temperature| As regards geographic areas, ODI should focus its efforts on California. Given the density of large farms in...
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