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Slow Release Fragrance and Disinfectant for Carpets ChE 4273 Capstone Dr. Bagajewicz Justin Woody Carrie Street

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Page 1: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Slow Release Fragrance and

Disinfectant for Carpets

ChE 4273 Capstone

Dr. Bagajewicz

Justin Woody

Carrie Street

Page 2: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Overview� Background

� Design

� Utilities

� Production Process

� Economics

Page 3: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

The Case for a Clean Carpet

�Dust Mites

�Mold

�Mildew

�Bacteria

Page 4: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

�Microscopic arachnids

�Dust mite’s dead remains and fecal matter are invisible cause respiratory problems

�Remains are suspended in the air for extended periods of time

Dust Mites

Page 5: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

� Feed on dead human skin cells

�> 55% humidity

�72°-79° F

�< 50% humidity, most die within 7-10 days

Dust Mites: Ideal Environment

Page 6: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Mold & Mildew

•Moist, warm, poorly ventilated places

•Quickly mature

•Produce floating spores

•Cause discomfort and allergies

Page 7: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Bacteria

•Gram negative

•Anaerobic

•Require wet environment

•Live in latex backing of carpet

•Produce butyric acid – foul smell

Page 8: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Wet Cleaning Problems

•Cause mildew growth

•Up to 20% water absorption

•Analogous to shampooing hair without rinsing

•Soapy, sticky residue

Page 9: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Current Products

� Arm&Hammer

� Borid

� Capture Clean

www.churchdwight.com

www.pestproducts.com

www.captureclean.com

Page 10: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Challenge

Freshen and Disinfect

– With Powders

� Slow release fragrance

� Small particles (biodegradable)

� Disinfectant

Page 11: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Potential SolutionProblem

boric acid, baking soda

Mildew

neutralize butyric acid odor with baking soda

Bacteria

boric acid, sodium propinoate

Mold

boric acid, tannic acid

Dust Mites

Page 12: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Natural Fragrances

RoseGeraniol

LemonCitral

LilyLinalool

Page 13: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Design

�Baking Soda

�Boric acid

� Linalool in PLGA for extended duration

Page 14: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Sodium bicarbonate

�Absorbs moisture

�Non-toxic

Page 15: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Boric Acid� Kill dust mites

� crystal coats food source

� Neutralize allergens

� Inhibit mold, mildew, bacteria, and fungi growth

� Kill cockroaches, beetles, and ants by chemical burns

Page 16: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

•Poly(lactic-co-glycolic acid)

•Biodegradable

•Degrades by hydrolysis of ester linkages

PLGA

Page 17: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Utility Function Method

U= Uiwi

U = utility w = importance weight

i = characteristic

Page 18: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Utility Function Method

weights = 1∑

Poll Consumers

WeightsCharacteristics

Page 19: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

0.15Odor Elimination

0.09Toxicity

0.14Scent Type

WeightCharacteristic

0.19Fragrance Duration

0.22Scent Intensity

0.21Disinfectant Effectiveness

Page 20: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Utility Function Method

Consumer Tests

measure preference

Relate characteristics to physical property

Page 21: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Disinfectant Effectiveness relates

�% of mites killed

�Amount of boric acid per unit area

Page 22: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Disinfectant Effectiveness

0

20

40

60

80

100

0 20 40 60 80 100Effectiveness (% of mites killed)

Util

ity (%

)

Page 23: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Disinfectant EffectivenessRandom Walk

Page 24: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Disinfectant Effectiveness

Page 25: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Disinfectant Effectiveness

Page 26: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Intensity relates

� Fragrance intensity

�Number of particles per unit area (n)

Page 27: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Intensity

Page 28: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Quantifying Consumer Preference

� Journal of Food and Science

� various amounts of linalool

� human subjects determined scent intensity

� 1.5 feet away from the sample

� 25 minutes after the sample was prepared

Page 29: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration relates

�Application frequency

�Amount of linalool in particles (L)

Page 30: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration

Page 31: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Mass Transfer quantifies

�Scent Intensity

� Fragrance Duration

Page 32: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Particle Schematic

R1 R2

DmDa

liquid

PLGAair

Page 33: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Design Parameters

�Number of particles (n)

�Amount of linalool in particles (L)

Page 34: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Expected Trends

time

Lin

alo

ol C

on

cen

trat

ionn = number of particles per unit areaL = amount of fragrance in each particle

L

n

Page 35: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Assumptions

�Radial symmetry

�Air is semi-infinite

�No degradation inside particle

�Polymer degradation slower than fragrance diffusion

Page 36: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Equation Development

Welty et al., “Fundamentals of Momentum, Heat, and Mass Transfer,” 2001.

02 =

dr

dCr

dr

d

r

abC −=

Page 37: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Boundary ConditionssatcC = at r = R1

22

*RraRrm dr

dCD

dr

dCD

===

−−+= ∞∞tD

Rrerfc

r

RCRCCC

a2)*)(*(** 22

2

r > R2

Page 38: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Linalool Concentration

)()()( 22

21

2 RCD

D

r

RRC

D

D

R

RcrC

m

a

m

asat +−=

m

a

m

a

sat

D

D

D

D

R

Rc

RC−+

=

1

22

1)(

Page 39: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Intensity

�Relates

�Odor intensity

�Number of particles per unit area (n)

�Assuming

�10 micron particle diameter

�Fixed amount of linalool in particles (L) to 90% linalool

Page 40: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Intensity: Concentration at 5 ft

0.0E+00

2.0E-09

4.0E-09

6.0E-09

8.0E-09

1.0E-08

1.2E-08

1.4E-08

1.6E-08

0 2 4 6 8 10time (weeks)

Lin

alo

ol C

on

cen

trat

ion

(M) 0.000055

0.000109

0.000219

0.000437

0.000907

0.001361Max utility (M)

Min (M)

g PLGA/ft2

L = 90%R1 = 4.5 µm1.57x109

particles/gn

Page 41: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Intensity

Page 42: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration

mdr

dCD

t

m =∫*

0

22

31*

)(3 RRCD

Rct

a

o=

Page 43: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration

�Relates

�Application frequency

�Amount of linalool in particles (L)

�Assuming

�24 hours to concentration threshold

�Fixed number of particles (n)

Page 44: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration:

Concentration at 5 ft

0.0E+00

5.0E-09

1.0E-08

1.5E-08

2.0E-08

2.5E-08

0 5 10 15 20time (weeks)

Lin

alo

ol C

on

cen

trat

ion

(M

)

3.04.04.54.9Max utility (M)Min (M)

R1 (µm)

n = 1 g particles

L

Page 45: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration

Page 46: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Fragrance Duration

Page 47: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Toxicity relates

�Toxicity

�Amount of boric acid per unit area

Page 48: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Toxicity

Page 49: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Toxicity• Components are fixed

•Toxicity is the same as the competitor

Page 50: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Toxicity

Page 51: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Odor Elimination relates

�Odor Eliminated (Freshness)

�Amount of baking soda per unit area

Page 52: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Odor Elimination

Page 53: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Odor Elimination

Page 54: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Odor Elimination

Page 55: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Scent Type

Page 56: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Production Process

Double Emulsion

Mixing

Product

Fragrance Particles

Other Raw Materials

Page 57: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Water/Oil/Water Double Emulsion

Methylenechloride/PLGA solution

Aqueous linalool

Page 58: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion

�Mix by sonication

Sonicatorwww.2spi.com

Page 59: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion

Linalool

in methylene chloride/PLGA

H2O and PVA

(emulsifying agent)

Page 60: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion� PVA ensures small colloids stay small

Page 61: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion

�Remove organic solvent

Rotary Evaporatoraironline.com/equipment

Page 62: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion

�Collect microspheres

Centrifugeaironline.com/equipment/

Page 63: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Double Emulsion

Freeze Dryerwww.labx.com

�Prepare for mixing

Page 64: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Production Process: Mixing

Fragrance Particles

Baking Soda Boric Acid

Mixer

Packaging

Page 65: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Cost Analysis

� TCI and FCI

� Price and Demand Model

� Maximized Utility

� Maximized NPW

� Shipping Costs

� Advertising Costs

� Risk

� Strauss Plots

� Monte-Carlo Simulations

Page 66: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Price and Demand

= consumer awareness

= competitor utility/our utility

= diminishing marginal utility (concave <1)

= budget constraint

= price

= demand

1 = ours, 2 = competition

ρρρ

βα

1

1

2

112110 D

P

DPYPDP

−=

αβρY

DP

P2=10$

U2=62

Page 67: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Price and Demand

Budget Constraint = 54 million

Page 68: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Alpha� is a function of advertising and timeα

α� Preliminary estimates based on = 0.9

Page 69: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Advertising� Directly proportional to demand

� $5 million for 100% demand

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

0 0.2 0.4 0.6 0.8 1

Demand

Ad

vert

isin

g

Page 70: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Shipping

Choose Distribution

Centers

Assign Weights

population and humidity

throughout USA

Page 71: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Shipping

Possible Plant

Locations

Minimize Cost

high productivity

Page 72: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Shipping Assumptions

�Ship by truck

�Constant product composition

�Uniform price in all regions

�Uniform budget constraint in all regions

Page 73: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Distribution Centers

Albany, NY

Tallahassee, FL

Indianapolis, IN

Jefferson City, MO

Austin, TX

Denver, CO

Salt Lake City, UT

Olympia, WA Sacramento, CA

Phoenix, AZ

Harrisburg, PA

Columbia, SC

Nashville, TN

St Paul, MN

Baton Rouge, LA

Helena, MT

Page 74: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Distribution Centers

50states.com

Page 75: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Shipping Calculations

Page 76: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

0.0576%750,000Baton Rouge, LA

0.0973%3 millionSt. Paul, MN

0.1178%3.9

million

Olympia, WA

Fraction of

Production

Avg.

Humidity

PopulationPlant

Location

Page 77: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

$ 260Little Rock, AR

Cost per galPlant Location

$ 250Oklahoma City, OK

$ 304Atlanta, GA

$ 289Jackson, MS

$ 304Montgomery, AL

Page 78: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

TCI Calculations

Page 79: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

TCI Calculations

$525,000TCI

$175,000Working Capital

$350,000FCI

Page 80: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

NPW Calculations

Page 81: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Maximum Utility

�Composition

� 0.1% Linalool

� 0.2% PLGA

� 20.6% Boric Acid

� 79.1% Baking Soda

�Cost per 16 oz container to have + NPW

� Unrealistic, you get a –NPW at any price

Page 82: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Maximum NPW Product� Varied Composition – which varied utility

Page 83: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Maximum NPW Product� Maximum NPW Utility =0.735 Price=$19.44

� Composition – 0.01% Linalool, 0.02% PLGA, 17.9% Boric Acid, 80% Baking Soda

β

Page 84: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Revised Budget Constraint• All calculations have been based on disinfectant market only

• Y=54 million

• Max NPW is $1,730,000 – lowest approximation

• If the air freshener market (98 million) is taken into account

• Max NPW is $13,300,000 – highest approximation

• Actual budget constraint most likely would fall in the middle

• A novel idea is to poll consumers

• How much would they pay extra than just disinfectant

• Shown below

New Y=97 million

Max NPW = $6,800,000

Page 85: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Risk

�Strauss Plots

� Varied all raw materials 20% of 2007 selling price

�Monte Carlo Simulations

� Varied all raw materials 20% of 2007 selling price

Page 86: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Strauss Plots

Page 87: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Strauss Plot SlopeCost

-1e6Baking Soda

-3e5Boric Acid

-400PLGA

-150Linalool

Page 88: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Strauss Plots• Sensitivity to Price

• Lower the price, higher the demand, and higher sensitivities

Page 89: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

Strauss Plot Slopes

-1.3e5

-2.9e5

-3.6e5

Boric Acid

-1.0e6-123-280$21

-1.3e6-129-350$20

-1.6e6-162-440$19

Baking Soda

PLGALinaloolPrice per container

As price goes down, demand goes up the NPW is a stronger function of the raw materials

Page 90: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

5% of losing money

95% of making money

Monte Carlo Simulations – Y=54mill

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14% of losing money

86% of making money

Monte Carlo Simulations – Y=54mill

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97% of losing money

3% of making money

Monte Carlo Simulations – Y=54mill

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Monte Carlo Simulations – Y=97mill

1% of losing money

99% of making money

Page 94: Slow Release Fragrance and Disinfectant for Carpets · •Live in latex backing of carpet •Produce butyric acid –foul smell. Wet Cleaning Problems •Cause mildew growth •Up

1% of losing money

99% of making money

Monte Carlo Simulations – Y=97mill

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66% of losing money

34% of making money

Monte Carlo Simulations – Y=97mill

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Questions

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Utility Questions

This table breaks down our conservative approach for the utility. When polled consumers stated for our product their would be a 0 utility for a product that had no duration and no scent, yet we felt that to be conservative we should give our competitor 50% of the utility so that we would not be making unrealistic amounts of money. This table shows how much we make with the conservative approach and how much we would have made if the competitor would have had a 0 utility for both. Another implication of our model being conservative with the utility for the fragrance of the competitor is that is gave us the freedom to look into the fragrance market also, which is very important. It would be like comparing apples and oranges if we would have excluded that.

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Equipment Costs

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TCI, FCI, Working Capital

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ROI and PBP questions