Case Assignments
CASE #3: B&L Inc. (Chapter 5)
Your team was asked to analyze the situation as detailed in the case and formulate a set of recommendations supported by the facts and/or numbers. You will be presenting your findings and recommendations to the CPO and CFO.
Consider the following:
1. Do you think B&L should outsource the bracket? Why or why not?
2. What do you think of the quote from Mayes? How would you respond? What information would you request?
3. What would you say to the plant manager?
4. Is the cost savings sufficient enough to move the business to Mayes?
5. Can Brian Wilson use the EOQ formula here to establish the lot size? Do all of the EOQ assumptions hold here?
Assume that you were in the position of Brian Wilson:
A. What would be your analysis of the opportunity to outsource the outrigger bracket?
B. If B&L was to outsource the outrigger bracket to Mayes, what lot sizes would you specify and why? (Note: You must address this question, regardless of your response to Question A.)
Teams are encouraged to go beyond the immediate information of the case and research data and information applicable to the specific industry. Industry averages and other information should be readily available from public companies and business publications, such as S&P, Bloomberg online, etc. State all assumptions made, such as holding costs, etc. and your rationale.
CASE #4: Throsel Drilling (Chapter 8)
Your team was asked to analyze the situation as detailed in the case and formulate a set of recommendations supported by the facts and/or numbers. You will be presenting your findings and recommendations to an executive management team.
Consider the following:
1. Analyze the budget. Is it reasonable?
2. Why did John Dietrich expect total inventories to decline following the merger?
3. What controls do you want to put in place at the Phoenix warehouse?
4. How will you get the drilling foremen to buy into your plan?