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Richardson Case

Essay by   •  October 21, 2013  •  Case Study  •  732 Words (3 Pages)  •  710 Views

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1.0 Issue Identification

1.1 Immediate Issue

The immediate issue in this case is the global shortage of honey. The shortage is due to the finding of Chloramphenicol in Chinese Honey. Once the Canadian Food Inspection Agency (CFIA) found traces all suppliers were notified, including Harrington Honey, who discontinued its import of Chinese Honey.

An urgent decision needs to be made on what substitute will be sold in place of the Chinese blend. This will directly affect production of products that use this honey for manufacturing.

1.2 Systematic Issues

2.2.1 Price

Price of honey will increase as the supply of Chinese honey decreases.

2.2.2 Quality

Quality of honey may lessen when different blends are used as a substitute.

2.0 Environmental & Root Cause Analysis

Unifine Richardson is a food manufacture that sells salad dressings, ice cream toppings and sauces to the food service market, retailers and industrial customers. Unifine is made up of 110 employees, split between three shifts. The company's sole supplier for honey is Harrington Honey which sells a 50-50 Chinese-Canadian honey blend to Unifine. Unifine purchases one million pounds of honey a year at an average rate of $0.91. Recently the Canadian Food Inspection Agency (CFIA) found traces of chloramphenicol in Chinese honey. Until there is a measure put in place to detect and reject containment honey, there will be no use of this honey. Due to the recent findings, 20% of the world's supply of honey will be contaminated, causing a global shortage. Unifine management will have to investigate an alternative blend of honey until measures are put in place to detect contaminated honey. When deciding an alternative advantages and dis-advantages must be review. In addition, cost and quality must be looked at carefully.

3.0 Alternatives and/or Options

3.1 Alternative #1 - 100% Canadian Honey ($1.75/lb CAD)

Choose to purchase 100% Canadian Honey as an alternative honey to use for production.

PRO - local supplier

-good taste

-high quality

CON -expensive

3.2 Alternative #2- 100% US Honey($1.10/lb USD= $1.79/lb CAD)

Choose to purchase only 100% United States Honey an alternative honey to use for production. .

PRO - good quality

-low probability of recall

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