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Case Study Report 1 THREE JAYS CORPORATION; Complete solution.

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Case Study Report 1 THREE JAYS CORPORATION; Complete solution. Case Study Report 1: THREE JAYS CORPORATION 1. Using the data in case Exhibit 4 and the 2012 annual demand, calculate the EOQ and RO... P quantities for the five SKUs scheduled to be produced in the last week of June. How do these amounts compare with those calculated in 2011? Compare the increases in EOQs with the increases in annual demand. (2.5 points) The 2012 Annual Demand is given as Exhibit 5: Monthly Sales Data Label Type Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Year Total 3Js Strawberry Jam 2012 345 301 325 299 344 296 329 334 349 325 289 333 3,869 2013 566 671 384 631 616 2,868 Marran Markets Raspberry Jelly 2012 229 270 236 279 273 255 236 232 235 276 244 241 3,006 2013 744 737 425 379 571 2,856 Kerry's Marts Peach Jam 2012 156 176 174 144 160 178 155 159 178 166 176 148 1,970 2013 167 146 78 84 117 592 Dom's Food Stores Blueberry Jam 2012 92 109 98 99 102 111 103 99 94 104 107 93 1,211 2013 100 99 80 139 108 526 AAA Grocers Apple/Mint Jelly 2012 66 77 79 69 65 66 68 67 62 74 71 68 832 2013 73 63 110 146 88 480 The EOQ and ROP quantities for the five SKU’s based on 2012 annual demand is given as Total Set up cost (S) Annual Demand (D) Carrying Cost (i) % Unit Cost (C) EOQ (cases) ROP (cases) Strawberry Jam 63.7 3869 9% 28.34 440 223 Raspberry Jam 63.7 3006 9% 30.52 373 173 Peach Jam 63.7 1970 9% 26.86 322 114 Blueberry Jam 63.7 1211 9% 29.01 243 70 Apple/Mint Jelly 63.7 832 9% 26.32 212 48 As Demand increased from 2011 to 2012, the EOQ’s also increased Demand (2010) Demand (2012) Increase in Demand EOQ (2010) EOQ (2012) Increase in EOQ 2993 3869 29.27% 387 440 13.70% 2335 3006 28.74% 329 373 13.37% 1492 1970 32.04% 280 322 15.00% 886 1211 36.68% 208 243 16.83% 625 832 33.12% 183 212 15.85% So, if Annual Demand doubles, the EOQ will increase by sqrt(2) ......continued...... [Show More]

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