MSD II: Sensitivity Analysis

Zach Alsheimer, Casey Bauman, Matt Gundrum,

Garth Sinclair

HFA Quote Tooling cost for each size would be between $80,000-$90,000

40 gauge on the 5” Smooth Wall Pan, packed 500 per case

50 gauge on the 8” Smooth Wall Pan, packed 250 per case

Full Curl Rim Style

Signed 2 Year Agreement required Initial Lead-Time 8-10 weeks

Minimum Run/Order 250,000 pans each size.  Minimum Annual Volume 1,000,000 pans each size

Approximate Case Cost:   5” Pan $110.00/cs   8” Pan $95.00/cs

HFA Quote Comparison

HFA Estimate: Large: $0.38 Small: $0.22

Key Lime Pie Benchmark: Large: $0.12 Small: $0.09

Effect on ROI

Sensitivity Analysis

To break even yearly: Large: $0.34 Small: $0.20*This will never pay off cost of tooling

To save at least $10,000 yearly: Large: $0.32 Small: $0.18*This has a 20 year pay back period

Sensitivity Analysis

To save at least $40,000 yearly: Large: $0.22 Small: $0.15*This will have a 5 year pay back period

Going Forward Pursue quotes from other suppliers.

• Perhaps the company that currently manufactures Key Lime Pie Tins (D&W)

Additional Insert Testing

Slicing of cheesecakes in tins• Some possible solutions…

Questions Has Wegmans heard back from any

other suppliers?• ROI• Sample tins for depanning experimentation

Cheesecake schedule for this week?