Mahanagar Municipal Dairy

Mahanagar Municipal Dairy - Introduction

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Introduction With the idea sprung in 1950, it was manifested in 1955 in the form of  Mahanagar Municipal Dairy  (MD  from now on. Yes, it should have been MMD, but we all love the TV Show House MD). The  organization was formed to assure supply of quality milk at reasonable prices to the city. It has  recently prepared its financial statements for the year ending 1961-62, and in this “new light,” its  intellectual  policy makers meet to discuss the recent losses. After reading the case, we felt that despite the multiple exhibits laden with numeric data, it was  crying for a qualitative rather than a quantitative analysis. We have tried our best to stick to the  latter. Laying the groundwork: Fundamental Calculations To calculate the amount of cow milk and buffalo milk procured during the year by MD, we have  used the following case facts: 1. The raw milk procured during the year is 74,14,600 (from Exhibit 2. Assuming we haven’t  overlooked something, there’s a misprint in the exhibit. The milk procured cannot be less  than milk utilized) 2. The fact that the dairy buys milk during the three seasons in the minimum ratio 3:4:5. 3. The information about the sources of milk supply to the dairy. We assume that the figures  about milk procurement given are for the summer season. We also assume, not for  quantitative simplicity but for the lack of sufficient pertinent information, that 3:4:5 is the  actual ratio in which MD procures milk during the three seasons. Cow Milk/day Buffalo Milk/day Gopalak Sangh 2320 1800 Local Milkmen 1210 3800 A District Union Another Union Bought/day (Summers) 3530 5600 + X Summers Total 430660 (5600 + X) *122 Annual 1722640 (5600 + X) *(122*12/3) 0 X Therefore,    Given, a max of 7% of sweet fresh milk was sour. Again, for simplicity given the lack of additional  information, we assume that 7% was the in fact the actual figure, and this ratio applied to both cow  and buffalo milk. Taking the case of cow milk,
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Sweet cow milk =  Sour cow milk =  Hence,  Similarly, sweet milk can be calculated for buffalo milk. The table summarizing the calculated values is shown below: Table 1 Cow Milk/year Buffalo Milk/year Procured      1,722,640.00                      5,691,958.80  Sweet Fresh Milk      1,609,943.93                      5,319,587.66  Analyzing the current production For the milk procured and produced in 1961-62, the fat contents are:  Table 2 Fat Content Cow Milk 4.20% Buffalo Milk 7.10% Whole Milk 6.6%, 6% Toned Milk 3% Double Toned  Milk 1.50% Cow-milk 3.50% Skimmed Milk  Powder 0% Note: 1.
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This note was uploaded on 03/01/2012 for the course STRATEGY Om121 taught by Professor Abhinavdhar during the Spring '12 term at Harvard.

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Mahanagar Municipal Dairy - Introduction

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