S0C 200: Case Study Report 1: THREE JAYS CORPORATION; Complete Solution.
Case Study 1 – Three Jays Corporation Case Study Report 1: THREE JAYS CORPORATION 1. 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) The 2012 Annual Demand is given as Exhibit 5: Monthly Sales Data Label Type Ja n Fe b Mar Apr Ma y June July Aug Sept Oc t Nov Dec Year Total 3Js Strawberry Jam ,869 2013 566 671 384 631 616 2,868 Marran Markets Raspberry Jelly ,006 379 571 2,856 Kerry's Marts Peach Jam ,970 Dom's Food Stores Blueberry Jam ,211 AAA Grocers Apple/Mint Jelly The EOQ and ROP quantities for the five SKU’s based on 2012 annual demand is given as Total Set up cost (S) Annual Deman d (D) Carryin g Cost (i) % Unit Cost (C) EOQ (cases) ROP (cases) Strawberry Jam 63.7 3869 9% 28. Raspberry Jam 63.7 3006 9% 30. Peach Jam 63.7 1970 9% 26. Page 1 of 12 Case Study 1 – Three Jays Corporation 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
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