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Case Study

Supporting Company

For Farmers

The Challenge

The analysis of the supply chain revealed a number of problems: lack of a forecasting system, suboptimal positioning of storage units within the supply chain and poor integration of supply chain processes between Sedalcol and For Farmers. These problems lead to pressure situations, where For Farmers have to discount, are forced into contracts and a conduct a wrong pricing and contracting policy. This leads to a huge economic loss.

The Outcome

The research has shown that the combination of demand profiling and game theory leads to a business analysis tool which allows to identify the reasons for sub-optimal business performance. Without game theoretical considerations, parts of the business would have stayed unexplained and important factors contributing to profit losses would have been overlooked. Hence, this thesis provides a model of the profitability incentive scheme.