Red Brand Canner Case

Red Brand Canner Case - October 12, 2010 Click to edit...

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Click to edit Master subtitle style 2/2/11 Red Brand Canners Case Analysis October 12, 2010 Elisa Purnamasari Se-Joong Kim Stephanie Sinugroho Stephanie Wijanarko
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Click to edit Master subtitle style 2/2/11 Products Production Plan 8 points or higher – Whole canned tomatoes 6 points or higher – Tomato juice 5 points or higher – Tomato paste Tomato Crop Capacity 600,000 lbs of Grade A (9 points) tomatoes 2,400,000 lbs of Grade B (5 points) tomatoes Optional purchase: 80,000 lbs of Grade A tomatoes at $0.085/lb
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Click to edit Master subtitle style 2/2/11 Cooper’s Suggestion Production Plan Use entire crops to produce whole canned tomatoes. Reasons: - Allocate tomato cost based on quantity only. - Whole tomatoes incremental profit was greater than any other tomato products. - Whole tomatoes demand was the highest.
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Click to edit Master subtitle style 2/2/11 Production Plan Cooper’s Problem Not enough Grade A tomatoes to satisfy the demand of whole canned tomatoes. If the whole crops are used to produce whole canned tomatoes, average quality point will drop to 5.8. Whole canned tomatoes production was limited to 800,000
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This note was uploaded on 02/01/2011 for the course BUAD 311 taught by Professor Vaitsos during the Fall '07 term at USC.

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Red Brand Canner Case - October 12, 2010 Click to edit...

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