CASE SOLUTIONS CASE 3-1 BRANT FREEZER COMPANY Question 1: When comparing performance during the first five months of 2013 with performance in 2012, which warehouse shows the most improvement? St. Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion. The cost for the first five months of 2012 was $9.97 and for the first five months of 2013, it fell to $9.07. Question 2: When comparing performance during the first five months of 2013 with performance in 2012, which warehouse shows the poorest change in performance? The worst change is the company’s own warehouse (located in Fargo), where costs per unit shipped increased 31%. Among the public warehouses used, Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brant uses. Question 3: When comparisons are made among all eight warehouses, which one do you think does the best job for the Brant Company? What criteria did you use? Why? Using the cost per unit handled criterion, St. Louis does the best job, closely followed by Chicago. Question 4: J.Q. is aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J.Q.
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- Summer '13
- Balance Sheet, Atlanta, actual costs