Purchasing business plans

Land purchases and many of the costs associated with faciUty development can be accompHshed with long-term loans of 15 to 30 years. Equipment such as pumps and tmcks are usually depreciated over a few years and are funded with shorter-term loans. Operating expenses for such items as feed, chemicals, fuel, utilities, salaries, taxes, and insurance may require periodic short-term loans to keep the business solvent. The projected income should be based on a reaUstic estimate of farmgate value of the product and an accurate assessment of anticipated production. Each business plan should project income and expenses projected over the term of all loans in order to demonstrate to the lending agency or venture capitaUst that there is a high probabiUty the investment will be repaid. 

Dupont purchased Protein Technologies (division of Ralston Purina) for 1.5 x 109 as part of business plan to develop soy protein foods. 

S OP links the company s strategic plans and business plan to its detailed processes - order entry, master scheduling, plant scheduling, and purchasing. S OP enables the company s managers to view the business holistically, and gives them a window into the future, to avoid lack of operational capacity to meet customer demand. 

It is evident from Figure 5.4 that although ORP is not so detailed as MRPII the key steps of the process are similar. From the business plan, a sales and operations plan which covers key products and resources needed to deliver the business plan. The monthly sales and operations planning meeting by senior managers approves the master operations plan. The operations team will review the product portfolio, supplier stams and the capacity of own resources, and ensure that purchase orders are raised to procure appropriate resources or services from suppliers. If the capacity of own resources are adequate then an internal control document for the customer order is processed. But a partnership with customers and with suppliers can and will achieve very obvious benefits to... 

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