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Eli Lilly, 9-692- 056 case study : Selected Harvard case studies will be divided among teams of two students for modeling and analysis. The purpose

Eli Lilly, 9-692- 056 case study : Selected Harvard case studies will be divided among teams of two students for modeling and analysis. The purpose of these projects is to deepen students understanding of Operations Management problems and techniques

1 2 3 4 5 6 7 8 9
Year

Annual volume (kg)

Unit cost savings

(1) * (2) Annual variable cost savings

Capital costs without Plan 1

Capital costs with Plan 1

(4) - (5) Annual capacity savings

Increase in process development costs

(3) + (6) - (7 ) Total net annual savings

Present value of total net annual savings

Year - launch year (1984)

Net present value from 1985 (@20%)

1985 10,000
1986 10,000
1987 10,000
1988 10,000
1989 25,000
1990 25,000

please show calculations!

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