The Research Of K Group Food Concentrated Juice Processing Plant

With continuous development of world economy and rising costs of manufacturing,there are more competitions in markets.It has become an important topic for every company how to increase economic returns by improving allocation of resources and lowering operating costs.It is of great difficulty for companies to keep the operating cost in same level or even lower the cost but maintain stable quality and meet different demands of customers.In order to be more competitive,companies are seeking ways to reduce operation cost like transportation cost and warehousing cost by setting their facility or workshop close to living area of targeted customers,which shortens their supply chain and gets close to the market.Being the most important segment of global supply chain,establishment of new facility is not only an essential strategy about economic benefits(about manufacturing costs,operating costs and communication cost)but involve non-economic factors like communication efficiency and encouragement policyK Company is a Danish wholly owned multinational corporation which has five factories distributed in its headquarter Denmark,China,Saudi Arabia,Malaysia and Sri Lanka.It provides products like fruit juice,concentrated juice,ice cream and candies etc.K Company's main target markets are Europe market and Asia market.After collecting and studying data for several years,K Company believes that only one juice concentrate factory in Denmark is not enough to implement the development and operation strategy considering Europe market's consumption ability growth is in low level due to declining population in Europe whereas Asia market's consumption ability growth is constant.Therefore,K Company wants to find a proper place to establish a new juice concentrate factory to fulfill the idea of lowering operating costs and getting close to marketThe article finds out the reason that causes K Company's high manufacturing cost and low profit is because of improper orientation of the juice concentrate factory by referencing to the improvement of fruit pulps supply chain network-K Company's major raw material,studying K Company's case and the industry background and operation mode of concentrated juice market.K Company decides to establish a team of experts to firstly settle the factory location selection by using gravity and do site survey.Secondly make quantitive analysis of all factors that will influence the factory location selection by using AHP so as to get the best solution of factory location selection.Main research works:1)Study and analyze K Company's basic information and status,the major difficulties that K Company is facing in current operation and find out the reason.Provide the solution that establishing a new juice concentrate factory can lower the manufacturing cost.2)Pick out a place by using gravity,and pick out another two places as alternative options to make it three options by studying K Company's strategy and management.3)Analyze the three options of factory location selection by using AHP.Pick out the best location from the three options by referencing to three index that is economy,environment and business and ten sub-index for quantitive analysis4)Establish another team of experts to assess the result and application value of the program by referencing the company's profit rate and customer's satisfactory after the program implemented...