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Peanut Plantation Case Study

Case Study : Peanut Plantation Peanut Plantation (Peanut) is a large processor of peanuts based in Atlanta, Georgia. Peanut’s major products are roasted (plain and salted) peanuts distributed in 6-ounce bags and 18 ounce cans. Peanut’s dominant market position was a result of its focus on product freshness and availability at stores. Peanut’s product development department created a new peanut product that is cinnamon flavored. It was also able to reduce the amount of cholesterol in its peanuts, thus making the peanuts a more healthful snack. However, the new flavor shortened the shelf life of its products. Peanut’s marketing department decided to launch the new product on the Friday before Super Bowl. Advertisements were placed on television, on billboards, and in newspapers circulars one week before Super Bowl Sunday. A sweepstakes contest was also proposed that would award the contest winner a free trip for two to next year’s Super Bowl. Each can of cinnamon peanuts contained an insert with

Case study- Peanut Plantation 1. What interactions needed to take place among the marketing, manufacturing, logistics, and finance departments? Explain the logistics department’s role in the introduction of the new product. The interaction between marketing, manufacturing, logistics, and finance departments Manufacturing: A classic interface between logistics and manufacturing relates to the length of the production run. Manufacturing economies are typically associated with the long production runs with the infrequent manufacturing line setups or changeovers. In Peanut Company, the demand for the two days preceding the Super Bowl was estimated to be 2 million 18-ounce cans. Manufacturing capacity for the new product is 500,000 cans per week. Therefore, the manufacturing need to make sure that the material is meet the production schedule. Marketing: The interaction between logistics and marketing is the physical distribution or outbound side of an organization’s logistics system. Logistics manager offers input

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