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Does a cold store pay for itself for a tomato cooperative?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A farmer cooperative in Kenya handles 1,000 tonnes of tomatoes a season and sells them at KES 30,000 (Kenyan shillings) per tonne. Without cold storage, 25 percent is lost. With a cold store and a refrigerated truck, losses fall to 10 percent. The cold chain costs KES 3 million a season to run and finance. Is it worth it?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Gain = extra tonnes sold x price minus cold chain cost
- Tonnes sold = tonnes handled x (1 minus loss rate)
- Compare revenue with and without the cold chain
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Extra revenue
What a strong candidate does: 900 tonnes sold instead of 750, at KES 30,000.
Extra revenue (KES): 1,000 × (1 - 0.1) × 30,000 - 1,000 × (1 - 0.25) × 30,000 = 4,500,000
Step 2: Net gain
What a strong candidate does: Extra revenue minus the cost of the cold chain.
Net gain per season (KES): 4,500,000 - 3,000,000 = 1,500,000
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The cooperative should invest in the cold chain, because it earns about KES 1.5 million more than it costs each season. First, cutting losses from 25 to 10 percent saves 150 tonnes, worth KES 4.5 million at KES 30,000 a tonne. Second, the cold chain costs KES 3 million a season, and the gain comes before any price gain from selling later. The risk is unreliable power, since cold stores need electricity. As a next step, confirm power supply and enough volume to keep the store full.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.