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 Jan Fe Year
3Js straw belly jam b Mar Apr May June July Aug Sept Oct Nov Dec Total
The EOQ and ROP quantities for the five SKU’s based on 2012 annual demand is given as
Total Annual Carryin Unit EOQ ROP
Set up Deman g Cost Cost (C) (cases) (cases)
cost (S) d (D) (i) %
Strawberry Jam 63.7 3869 9% 28.34 440 223
Raspberry Jam 63.7 3006 9% 30.52 373 173
, Case Study 1 – Three Jays Corporation 831512392
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