Blanchard Importing and Distributing Co., Inc.

Read the course pack item “Blanchard Importing and Distributing Co., Inc.” and answer the following questions:

1. Correct the EOQ and ROP quantities for each of the five items mentioned in the case.

How do the corrected figures compare with the quantities calculated in 1969 and with production volumes scheduled for the June 1972 bottling run?

Please follow the scheme below to answer this question:

a. Investigate the original calculation of Setup Cost (denoted by “S” in the case), is there any mistake?

b. Similarly, investigate the original calculation of Unit Cost “C” and Carrying Cost

Percentage “K”, is there any mistake?

c. Is there any change in demand

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Is there any change in demand “R”?

d. Fix above mistakes (if any) and calculate the correct EOQ and ROP quantities.

2. What are the disadvantages of the formal EOQ/ROP system? What are the disadvantages of the actual system used for scheduling bottling runs at Blanchard?

Group Case Assignment V

Blanchard Importing and Distributing Co., Inc.

Read the course pack item “Blanchard Importing and Distributing Co., Inc.” and answer the following questions:

1. Correct the EOQ and ROP quantities for each of the five items mentioned in the case.

How do the corrected figures compare with the quantities calculated in 1969 and with production volumes scheduled for the June 1972 bottling run?

Please follow the scheme below to answer this question:

a. Investigate the original calculation of Setup Cost (denoted by “S” in the case), is there any mistake?

b. Similarly, investigate the original calculation of Unit Cost “C” and Carrying Cost

Percentage “K”, is there any mistake?

c. Is there any change in demand “R”?

d. Fix above mistakes (if any) and calculate the correct EOQ and ROP quantities.

2. What are the disadvantages of the formal EOQ/ROP system? What are the disadvantages of the actual system used for scheduling bottling runs at Blanchard?

Group Case Assignment V

Blanchard Importing and Distributing Co., Inc.

Read the course pack item “Blanchard Importing and Distributing Co., Inc.” and answer the following questions:

1. Correct the EOQ and ROP quantities