Order Description
Question 1: use the data in case Exhibit 1 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 increase in EOQs with the increases in annual demand.
question 2: 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.
Question 3: Compare your results with those obtained using the data in case Exhibit2. What do you attribute the difference to? After speaking to Jake and Josh, Brodie is now not sure if the EOQ model is the most appropriate for the current production process. Evaluate the scheduling method that Jake and Josh are using. Why are they not follwoing the established system? Compare with EOQ, which system do you prefer?
Question 4: What recommendation should Brodie present to Jana?
