# DSC 335 - Group#6 Blanchard Importing and Distribution Co Inc Case Study 1 Calculations for Setup cost(S Size Changeover Cost =(cost of resetting

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Group #6 Blanchard Importing and Distribution Co., Inc. Case Study 1. Calculations for Setup cost (S): Size Changeover Cost = (cost of resetting all machinery for change in bottle size / average number of different items of given size processed between size changeover) = 23000 / (52*7*10) =\$6.3186 per changeover Label Changeover Cost = Average length of time the bottling line was shut down to change from one label to another label of the same bottle size. = (23000*0.5*8)/(52*7) + 5*2.50*0.5 = \$10.20 per label changeover Order Processing Cost = yearly cost of two office workers / total number of separate item-bottling runs per year. = (18000)/350 = \$51.43 per order Blending Setup Costs Size Changeover Costs Labor Changeover Costs Order Processing Costs Total Setup Cost (S) Blanchard’s 80p Vodka \$1.15 \$6.32 \$10.20 \$51.43 \$69.10 Blanchard’s 80p Gin 1.08 6.32 10.20 51.43 \$69.03 MacCoy & MacCoy 86p Scotch 3.24 6.32 10.20 51.43 \$71.19 Triple 7 86p Whiskey 2.62 6.32 10.20 51.43 \$70.57 Blanchard’s

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## This note was uploaded on 02/26/2012 for the course DSC 335 taught by Professor Tolgaaydinliyim during the Spring '10 term at University of Oregon.

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DSC 335 - Group#6 Blanchard Importing and Distribution Co Inc Case Study 1 Calculations for Setup cost(S Size Changeover Cost =(cost of resetting

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