RBAC Round 2 Case Study

RMIT Business Analyst Champion
Season 2
ROUND 2
CASE STUDY
CASE STUDY PURPOSES
The aim of Round 2 is to help participants have an overview of the Business Analytics’ role in the
Logistics and Supply Chain management function of an FMCG company.
Through the case study, participants are expected to explore their ability in analyzing data,
generating insights, and giving recommendations on a business problem. The ability of slide
illustration, data story-telling, and critical thinking are also tested by requiring participants to
submit their answers in PowerPoint format.
*The case study is designed for the purpose of this competition ONLY. The case study for Round
2 is completely different from Round 1, so no data findings from Round 1 should be used in
Round 2. All the provided datasets and companies’ names do not represent any real cases. The
given businesses are NOT affected by the COVID-19 pandemic.
Case Study Purposes | Submission Guidelines > Business Case > Company Information > Business Questions > Marking Criteria > Terms Explanation | Contacts
SUBMISSION GUIDELINES
• Description: Your team will have 6 days to analyze and uncover insights from the given datasets.
Subsequently, you must provide appropriate recommendations to help the company improve its
performance (external sources could be used to support your arguments; in that case, proper references
should be provided). You are required to submit your answers in:
✓ A PowerPoint or PDF File presenting your key analysis and recommendations. The maximum number
of slides is 20 slides (including cover page, executive summary, divider page, ending page; excluding
references and appendices). For each extra slide, 5% of the total mark will be deducted.
✓ An Excel File demonstrating the required calculations and data tables. For details of the Excel
submission, please refer to the file “Round 2 Dataset”, especially the “Excel Submission Notes” Sheet.
SUBMISSION GUIDELINES
• Submission Details:
✓ Only Team Leader can submit the work.
✓ Each team only has ONE CHANCE of submission. In the scenario when a team submits more
than once, the RBAC Organizers will only grade the first submission.
✓ The slides should follow the given template and contain these required parts: a cover page, an
executive summary, your analyses and a conclusion/recap.
• Please name both of your submitted files as: Your Team Name_R2_RBAC2021
Please submit your team files via this submission form: https://bit.ly/RBAC_R2SubmissionForm
• Deadline of submission: 9:00 AM, Saturday 13 November 2021
BUSINESS CASE
SP Company (SP Co.) is one of the leading companies in the FMCG industry, which provides many
beverage products with high quality.
In the next year (Y1), the company plans to launch a new product: CAN HF (New) in the North to
occupy the market share in this region. The Sales Demand of the new product in Y1 is estimated as
follow:
Q1-Y1 Q2-Y1 Q3-Y1 Q4-Y1
25,000 Rcs 25,000 Rcs 50,000 Rcs 50,000 Rcs
BUSINESS CASE
However, after receiving feedback from the Supply Planning Department, it is reviewed that the
production capacity of CAN HF products in the North is insufficient. Thus, the company must
consider using primary transportation from South to North in order to fulfill the demand.
Moreover, according to the Financial Performance of the company, it was found that in this year (Y0),
Primary Costs of CAN CF and CAN HF products were also too high.
As a Financial Planning Manager, you are asked to:
• Further evaluate the current Primary Cost of SP Co. and recommend how to optimize this cost.
• Recommend the best solution to successfully launch the new product in the North.
COMPANY INFORMATION
Overall Supply Chain of SP Co.
Raw Materials Supplier Manufacturer Distributor Retailer Consumer
SALES
PROCUREMENT SUPPLY DEMAND OPERATIONS LOGISTICS CUSTOMER
MANAGEMENT
• Supply risk • Materials planning • Quality EHS • Inventory • Accountable by the Sales
management to ensure stock • MOH cost management Department
• Commoddity readiness for optimization • WH management
risk production, NPD • Manufacturing • Ensure customer
management launches… footprint services & service
• Master production • Manufacturer & level
scheduling and Maintainance
Lines utilizations
• Leading S&OP
monthly rolling SC
COMPANY INFORMATION
Logistics Components
Inventory & Delivery/

Primary
Warehouse Management Secondary
Transportation
Transportation
• Primary Transportation is the transportation among • Delivery Transportation is the transportation
Pallet Rental Manpower
(3%) (52%) internal WHs/DCs. from WHs/DCs to Distributors or Customers.
• Primary route is the matrix of Operation & SC that is • Delivery price has different schemes,
optimized at the lowest cost. depending on locations, types of Distributors,
Handling • Primary transportation volume and cost depends on types of road and channel, etc.
(7%) Freight
(12%) the Production Capacity of Plants, Demand Allocation • Type of Delivery: Road (Pallet or Loose Case).
of Sales Offices and Production Cost Optimization.
WH Rental • Type of Primary: Road, Rail & Sea
(16%)
Pallet Rental Manpower

(9%) (30%)
WH Rental Operating
(15%) (30%)
Handling
(10%)
COMPANY INFORMATION
Additional Information
1. In the South, CAN CF and CAN HF could only run together in ONE production line.
2. The Sales Demand in Y1 for the other CAN products (except for the CAN HF New) is estimated unchanged
compared to the last year.
3. After the production, CAN HF is required to be stored in WHs within a certain incubation lead time before
ready to be sold. However, this is not applied to CAN CF.
4. SP Co. owns a WH in the North, whereas the company needs to hire a third-party WH in the South with the price of
800 VND/Rcs.
5. The Weighted Average Cost of Capital (WACC) of SP Co. is 9%, with estimated inflation rate 4%.
6. The cost structure/Rcs of CAN HF (New) is as follow: Variable Product Cost/ Raw &
35,000
Packaging Material Cost:
Variable Manufacturing Cost: 13,000
Fixed Manufacturing Cost: 8,000
TOTAL COST (VND) 56,000
BUSINESS QUESTIONS
Evaluate the current Primary Cost of SP Co.
and recommend how to optimize this cost
1. Calculate the Primary Cost in Y0, including the cost/case for

each route and each transportation mode. Thereby, generate 2-3
insights on the Primary Volume and Cost among the routes*.
*The table of calculations for this question must be presented in the Excel submission.
2. Evaluate the Sales Demand, Production Supply and

Production Capacity of SP Co. in Y0. Accordingly, give out some
suggestions to reduce the Primary Cost in Y0 and specify the
Question 1 & 2 cost savings of each suggestion.
New Product Launch Planning
To launch the CAN HF (New) in the North, 3 options are
provided as follow. Please calculate and analyze to compare
the 3 given options and propose your recommendation on
the best solution to successfully launch CAN HF (New).
Option 1: Use Primary Transportation to transfer CAN HF from

Thi
the South to North and CAN CF from the North to South.
Option 2: Hire a Co-packing service for CAN HF (New) in the

North with:
• The Co-packing fee is 22,000 VND/Rcs (not including the
Question 3 Product Cost/ Raw & Packaging Material Cost).
• The Primary Cost from the Co-packer to the company’s WH is
1,000 VND/Rcs.
Case Study Purposes | Submission Guidelines > Business Background > Business Questions > Marking Criteria > Terms Explanations | Contacts
New Product Launch Planning
Option 3: Upgrade the CAN HF production line in the North to

increase the production capacity by 67%, in which:
• Lead time to upgrade takes 1 month without affecting the
production schedule.
• The initial investment is $1.0 million (with 70% Capex and
30% Opex).
Thi
• The maintenance cost per year is 2.5% of the Capex value.
• Useful life cycle is 7 years.
Present all your calculations for this question in the Excel

submission, following the instructions on the “Excel Submission
Question 3 Notes” Sheet.
Case Study Purposes | Submission Guidelines > Business Background > Business Questions > Marking Criteria > Terms Explanations | Contacts
MARKING CRITERIA
Weight out of 100 points:
Question 1 – 20 points | Question 2 – 35 points | Question 3 – 45 points
20% 25%
Data preparation Data analysis & insights
• Organize and present data in a neat format. • Provide clear and precise problem statements to address the business
• Ensure data integrity, accuracy, and uniformity. questions.
• Use proper formulas and calculation techniques or • Demonstrate excellent problem-solving capability by identifying relevant
models in the Excel file. and actionable items for the given situation with good explanations.
• Present all data tables and calculations that support • Use data precisely and thoughtfully during the problem-solving process.
the analysis in the PowerPoint/PDF files. If the • Synthesize the numbers to provide logical and critical insights to the
teams create new calculation sheets other than the business with strong backup on them.
given ones, please also include them in the Excel • Identify different criteria to analyze and compare the given options when
submission. needed.
• Make valid conclusion after providing analysis and identifying insights.
MARKING CRITERIA
20% 35%
Data visualization Recommendation
& slide presentation
• Pick the suitable charts or tables for each dataset and message. • Give data-informed recommendations based on the above
• Keep the chart/table precisely informative, highly insightful, and analytical results.
easy-to-understand for the audience. • Define clear goals and possible outcomes or impacts of the
• Choose suitable colors, numbers, and texts to articulately depict recommendations on the business.
the key messages without overwhelming the audience. • Tailor the recommendation regarding the company's capabilities.
• Present the slide in a professional format, with clear sections, • Ensure the recommendations are creative yet relevant to the
insightful executive summary and conclusion/recap at the end of business, feasible to implement, and having measurable results
the proposal. within a particular period of time.
• Present the slide in a logical, and easy-to-follow format with a • Provide evaluations on the recommendations in various aspects
good balance between texts and elements. related to the business operation.
TERMS EXPLANATION
Term Explanation
VNMU Vietnam Manufacturing Unit
Lead time The amount of time that passes from the start of a process until its conclusion.
Weighted Average Cost of Capital represents a firm's average cost of capital

WACC
from all sources.
Capital Expenditure is the cost of developing or providing non-consumable parts
Capex
for the product or system.
Opex Operating Expense is an ongoing cost for running a product, business, or system.
Contract Packaging is the overall process of assembling a product or good into its
Co-packing
final finished packaging.
WH / DC Warehouse / Distribution Center
TERMS EXPLANATION
Term Explanation
S&OP Sales & Operations Planning
EHS Environmental Health & Safety
Manufacturing Overhead Cost is the sum of all the indirect costs which are
MOH Cost
incurred while manufacturing a product.
New Product Development covers the complete process of bringing a new product
NPD
to market, renewing an existing product or introducing a product in a new market.
RM WH Raw Materials Warehouse
FGs WH Finished Goods Warehouse
CONTACTS
Hotline
0333 112 680 (Ms Lien Huong)
0906 674 553 (Ms Minh Nhien)
Fanpage
https://www.facebook.com/RBAChampion
Email
[email protected]

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RMIT Business Analyst Champion

Q1-Y1 Q2-Y1 Q3-Y1 Q4-Y1

25,000 Rcs 25,000 Rcs 50,000 Rcs 50,000 Rcs

As a Financial Planning Manager, you are asked to:

Raw Materials Supplier Manufacturer Distributor Retailer Consumer

Inventory & Delivery/

Pallet Rental Manpower

1. Calculate the Primary Cost in Y0, including the cost/case for

2. Evaluate the Sales Demand, Production Supply and

Option 1: Use Primary Transportation to transfer CAN HF from

Option 2: Hire a Co-packing service for CAN HF (New) in the

Option 3: Upgrade the CAN HF production line in the North to

Present all your calculations for this question in the Excel

• Ensure data integrity, accuracy, and uniformity. questions.

the proposal. within a particular period of time.

VNMU Vietnam Manufacturing Unit

Weighted Average Cost of Capital represents a firm's average cost of capital

WH / DC Warehouse / Distribution Center

S&OP Sales & Operations Planning

EHS Environmental Health & Safety

RM WH Raw Materials Warehouse

FGs WH Finished Goods Warehouse

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