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Case 34: Lorex Pharmaceuticals Case

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Case 34: Lorex Pharmaceuticals Case
Case 34
Lorex Pharmaceuticals
Elaina Wesel
MANA 6302 N1

Abstract
This report will seek to outline and discuss the challenges faced by Lorex Pharmaceuticals. This report will detail the circumstances that dictated the challenge faced Lorex Pharmaceuticals, as well as the key areas they must consider when attempting to resolve this challenge. The report will examine the possible outcomes, and make a final recommendation based on the information provided.
When developing a brand new product to be sold in the marketplace, it is crucial that all aspects of production are considered before beginning. Many factors need to be considered, including but not limited to which machinery will be used in production, where will the pricing be set,
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They had determined how many bottles of the product would be in each case shipped, and had even determined the amount they would charge for each case. What remained to be determined was the target amount to use on the filling machines to fill each bottle. Because the bottles were to be 10 ounces each, they would not be able to sell at full price any bottles that contained less than the 10 ounce volume. They would be forced to sell any under-filled bottles at a discount on the secondary market to places like hospitals, typically at a rate of …show more content…
They would not be able to begin filling bottles of Linatol until they perfected the filling process. The first step was to fill bottles with a test liquid that was of a similar consistency as Linatol so that they would be able to mirror the results as best as possible. A target fill volume of 10.2 ounces was selected, and several tests were run. After the testing was completed, the machine had filled a total of 144 bottles, of which 12 were not filled to the 10 ounce requirement, a success rate of 91.67%. The company felt comfortable using 10.2 ounces as the fill target since the end result was within the boundaries of acceptable

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