ABSTRACT
Both cocoa and the packing line had become too loaded to support reliable delivery performance. The consumption of cocoa required purchasing an extra 100 kg from their importer, every month and a half. They run the old packing line about one day every 4 weeks, to keep from falling behind on their deliveries. Coming up with new products that truly expand the customer base is a risky move involving substantial investment in R&D and then in marketing the new products. It is very difficult to predict when a customer, who likes a new product, simply stops buying the old one in favor of the new. There are obvious additional truly-variable-costs for export items, such as tariffs used by the other country to protect its own manufacturers. Choco-for-You's team made the simple decision to consider shipping costs to new market as additional truly variable costs, which boiled down to an average estimation of 3.00 for every unit of an exported item.
