Case Evaluation: Blanchard Adding and Distributing

 Case Analysis: Blanchard Adding and Distributing Essay

п»їManaging Business Operations

Case Examination: Blanchard Importing and Releasing Co. Incorporation. (HBS Circumstance 9 -- 673 -- 033) Posted by: Tushar Kothavale (130) NMIMS, FT MBA 2009-2011

1) Accurate the Monetary Order Amount (EOQ) and Reorder point (ROP) quantities for each in the five items mentioned in the case. We first predict the annual demand for the year 72 based on trend for four months of 1972 based upon corresponding several weeks of year 1971. Calculations intended for Annual require (R):

The assumption produced here is which the same trend for product sales as that for the four a few months of 72 would be implemented for the rest of the months from the 1972. Revenue prediction intended for annual demand for year 1972

Feb

Marly

Apr

May

Total Sales

Percentage Transform over 1971

Annual Require

Vodka

the year of 1971

128

136

233

219

716

2455

1972

210

303

275

463

1251

74. seventy two

4289

Wacholderbranntwein

1971

51

52

seventy four

157

334

1421

1972

166

a hunread forty two

133

213

654

95. 81

2782

Scotch

the year of 1971

79

82

151

sixty six

378

800

1972

82

68

66

38

254

-32. 70

538

Rum

1971

163

180

198

183

724

3096

1972

177

163

162

256

758

4. 70

3241

Rum

1971

10

thirty four

44

twenty six

114

449

1972

14

28

sixty one

55

one hundred fifty five

35. ninety six

610

Measurements for Setup cost (S):

Size conversion cost sama dengan (cost of resetting most machinery intended for change in container size/ avg. no . of different items of presented size processed between size changeover)

sama dengan 23000 as well as (52X7X10)

sama dengan $6. 3186 per conversion

Ingredients label changeover expense = Time cost received while label changeover procedure

= (23000X0. 5X8*)/(52X7) & 5X2. 5X0. 5

= $10. two per work changeover

*Assumption each day of the week is of almost eight hrs.

Order Processing cost = 18000/ 350

= $51. 43 per buy.

All characters in bucks

Blending Setup Cost

Size changeover price

Labour move cost

Purchase processing expense

Total create cost (S)

Blanchard's 80 proof Vodka

1 . 12-15

six. 32

10. 2

51. 43

69. 10

Blanchard's 70 proof Gin

1 . 08

6. thirty-two

10. two

51. 43

69. goal

MacCoy & MacCoy 86 proof Scotch

3. twenty four

6. 32

10. a couple of

51. 43

71. nineteen

Multiple 7 86 proof Merged Whiskey

installment payments on your 62

6th. 32

12. 2

fifty-one. 43

70. 57

Blanchard's 80 proof Ron Cores Rum

installment payments on your 33

6. 32

10. 2

51. 43

seventy. 28

Calculations pertaining to Unit price (C):

Fixed overhead allocation = total company fixed overhead pertaining to the year/ no . of cases sold per month. We determine total fixed overhead according to data provided for 1969. Total set overhead sama dengan 1 . 31X(2455+1421+800+3096+449)

= bucks 10769. fifty-one

Since fixed overhead is still constant coming from year to year

Right now for yr 1972,

Fixed overhead portion = 10769. 51 as well as 11461

sama dengan $ zero. 9396

Most figures in $

Blanchard's 80

Blanchard's 70

MacCoy & MacCoy

Three-way 7 86

Blanchard's 80

Proof Vodka

Proof Wacholderbranntwein

86 Proof Scotch

Proof Blended Whiskey

Proof Ron Cores Rum

Materials—beverage

0. 93

1 . 08

5. 46

installment payments on your 52

installment payments on your 74

Materials—packaging

1 . 27

1 . twenty-seven

1 . 28

1 . twenty-seven

1 . 28

Total Materials cost

installment payments on your 2

installment payments on your 35

your five. 73

several. 79

5. 01

Bottling labour

zero. 1

zero. 1

zero. 1

0. 1

zero. 1

Set overhead allocation

0. 94

0. 94

0. 94

0. 94

0. 94

Variable over head

0. five

0. a few

0. five

0. 5

0. 5

Customs work

1 . 55

Federal distilled spirits taxes

25. a couple of

25. two

27. 2009

27. 2009

25. 2

Federal rectification tax

0. 76

Total Unit Cost (C )

31. 13

31. forty-four

41. sixty four

36. ninety-seven

34. seventy six

EOQ & ROP Calculations:

Product

Total annual Demand (R )

Setup cost (S )

Product Cost (C )

Having cost percentage (K )

New EOQ

New ROP

EOQ as per 1969

ROP as per 69

Blanchard's 70 proof Vodka

4289

69. 10

31. 14

11. 5

407

289

327

one hundred sixty five

Blanchard's 85 proof Gin

2782

69. 03

thirty-one. 44

eleven. 5

326

187

248

96

MacCoy & MacCoy 86 resistant Scotch

538

71. 19

forty one. 64

14. 5

126

36

170

54

Three-way 7 eighty six proof Blended Whiskey

3241

70. 57

36. ninety-seven

11. 5

328

218

346

208

Blanchard's eighty proof Ron Cores Rum

610

seventy. 28

34. seventy six

11. five

146...

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