Case2 Solution

# 72 4289 gin 654 1421 9581 2782 scotch 254 800 3280

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Unformatted text preview: 54 800 -32.80 538 Whiskey 758 3096 4.70 3241 Rum 155 449 35.96 610 Calculations for Setup cost (S): 1 Size changeover cost = (cost of resetting all machinery for change in bottle size/ avg. no. of different items of given size processed between size changeover) = 23000 / (52X7X10) = \$6.3186 per changeover Label changeover cost = Labour cost incurred while label changeover process = (23000X0.5X8*)/(52X7) + 5X2.5X0.5 = \$10.2 per labour changeover *Assumption each working day is of 8 hrs. Order Processing cost = 18000/ 350 = \$51.43 per order. All figures in \$ Blanchard's 80 proof Vodka Blanchard's 80 proof Gin MacCoy & MacCoy 86 proof Scotch Triple 7 86 proof Blended Whiskey Blanchard's 80 proof Ron Cores Rum Blending Setup Cost Size changeover cost Labour changeover cost Order processing cost Total setup cost (S) 1.15 6.32 10.2 51.43 69.10 1.08 6.32 10.2 51.43 69.03 3.24 6.32 10.2 51.43 71.19 2.62 6.32 10.2 51.43 70.57 2.33 6.32 10.2 51.43 70.28 Calculations for Unit cost (C): Fixed ove...
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## This document was uploaded on 01/29/2014.

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