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Case Study Report 1: THREE JAYS CORPORATION
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Using the data in case Exhibit 4 and the 2012 annual demand, calculate the EOQ and ROP
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)
Brodie is uncertain if the costs presented in case Exhibit 2 are appropriate for determining the
EOQs. What changes would you recommend, and why? Should the cost of the three idle part-time
workers be included when the production line is down? Using the 2012 annual demand, and your
recommendations, recalculate the EOQs for the five SKUs. (2.5 points
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[Solved] Case Study Report 1: THREE JAYS CORPORATION
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- Namoruernest
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In set up costs, the cost of part time workers should also be included, as they are idle at that time.
Assuming the salary of each part time worker to be half that of full time worke...
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