Question

.219MAX20 40 1 too .000h E Case Study 19. In the steak packaging industry, traditional cost chains include raising cattle on sparsely distributed farms and farms, transporting live cattle to labor-intensive slaughterhouses, and then delivering whole steaks to retailers, whose slaughterhouses cut down smaller steaks and pack them up and sell them to shoppers. Ohio Steak Packaging Company has adopted a completely different strategy to transform the traditional value 2chain, build large automated slaughterhouses, and build slaughterhouses where it can transport cattle economically, cut which will increase the number of beef pieces, then pack them and ship them to retailers The company's inbound cattle transport costs are a major cost item in the traditional value chain, but now they can be greatly reduced by reducing long-distance transport; at the same time, no longer the whole piece of beef transport, which also reduces the high beef waste, greatly reducing the cost of outbound. The company's strategy has been very successful, and it has achieved the status of the largest beef packaging company in the United States, surpassing previous industry leaders in one fell swoop. According to the above cases, illustrated how to achieve low cost some beef into smaller pieces at processing plants, C

Answer 1

The low cost can be attributed to

(a) Reducing the cost of transportation by building the slaughterhouse near to the cattle rearing sources.

(b) Building large slaughterhouses which can process the meat more efficiently.

(c) Reducing the cust siZe of the beef pieces so as to eliminate the need of re cutting the pieces and thus reducing the waste and unnecessary handling which might incur higher cost and effort.