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
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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 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
Using your files from Part 2 input resources and their costs if you have not already done so. All information is found in Tables 2 and 3.
Q.1) Compute the following quantities for the current production process as well as for Mike’s and Ike’s plans, assuming the plans are implemented as described in the case.
Question 4: Take into account the answer to question 1 and the supplier’s new policy outlined in question 2 and the warehouse’s new policy in question 3. Then determine Low’s new EOQ.
Question 29: A manufacturing process has been experiencing problems. The operators charting the process data have identified the cause to be due to an unanticipated change in incoming raw materials. This problem should be considered:
(TCO B) You are the project manager for three projects. You are about to estimate costs for these three projects. Given the below information on each project, recommend an appropriate estimation method and justify your answer for each.
The costing approach should be based on per Transaction Basis rather than on per kit or per pound basis because of the following reasons:
We started the case analysis by the normality test for the current data to check if the data is normally distributed or not. Our objective is to calculate the current Total Cost and then come up with a better solution to lower the cost.
b. Use your answer to part A to determine the total annual indirect cost assigned to:
The cost of implementation of the options: It deals with the technicians and the reduction in time of implementation. This leads to better customer service and increases efficiency of the technicians. Also considering a customer base reduction of 5% (Exhibit 2), $1 million dollars will be a prudent investment.
4. Use the following schedule to compute the total indirect cost allocated to each customer line (show your computations beside the activity description)
Q3. How were the limitations of the existing cost system overcome by the ABC Cost System? What are the implications of the ABC system?
Abby Conroy was tasked with calculating an effective quote for Breeland Ltd., she chose the activity based accounting costing system since it more accurately captures the related costs. A special order was placed by Breeland Ltd. with Ace Fertilizer Company. The did not plan to order more of this product in the future. Based on Ace’s policy, the special order included disposal costs for any used materials in the event no other orders existed for the unused materials at the time the Breeland contract was signed. Abby correctly calculated the total direct material and labor costs and accurately arrived at the indirect costs using the ABC method and used cost activity pools that make sense for the company and
1) Correct the Economic Order Quantity (EOQ) and Reorder point (ROP) quantities for each of the five items mentioned in the case.
The Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year: