Blanchard Imports

9-673-033 Blanchard Importing and Distribution Co., Inc. HBSP 12pp. Teaching Note AvailableAnnotation - Illustration of the two main types of errors resulting from use of the economic order quantity (EOQ) as a tool in productionscheduling. Designed to permit class discussion to begin with a consideration of one common type of mistake, errors in calculation of the EOQ volume resulting from use of incorrect data for the input parameters of the formula. The analysis can then shift to a more general discussion of the second type of error, the misapplication of EOQ and re-order point (ROP) techniques to a given system. Class discussion can conclude with student recommendations of alternative techniques which may be better suited to the Blanchard operation than the EOQ/ROP method.

SESSION 19: THE ROLE OF INVENTORY - THE TRADITIONAL VIEW 1. Read Chapter 14 in CAJ. 2. Although the EOQ/ROP (or more appropriately, ELS) system may not be appropriate for Blanchard because of the inapplicability of the basic theoretical assumptions, it is of interest to consider the operational feasibility of an EOQ/ROP system. Select Blanchard Vodka in quarts as an example product, and calculate the ELS for this product. 3. What would be the inventory policy that would result from this