Brant Freezer Case Analysis

Brant Freezer Company

Marika Bochorishvili Tamar Geladze Givi Kodua

1. When comparing performance during the first five months of 2010 with performance in 2009, which warehouse shows the most improvement?

Before we answer the question there are some calculation needed to be done. First we have to create formula which will be our guide. It will be better to compute what is the 1 month cost on each shipped unit for each warehouse. Useful formula for this will be:

Cost÷Number of Shipped Units÷Number of Monthes

For example : Atlanta warehouse in 2009 has cost of $ 35,890 for 5 months through 31 May during which there was shipped 4,080 units of product. Based on our formula 1 month cost on each shipped unit is :

$ 35,890÷4,080÷5≈$ 1.76

Followed table is made by Excel based on our formula:

  | 20095-months | 20105-months | 2009>2010 | Difference =2009-2010 |

Atlanta | $1.76 | $1.14 | TRUE | $0.62 |

Boston | $1.82 | $1.89 | FALSE | ($0.06) |

Chicago | $1.80 | $1.85 | FALSE | ($0.05) |

Denver | $1.90 | $2.10 | FALSE | ($0.20) |

Fargo | $1.81 | $2.39 | FALSE | ($0.58) |

LA | $1.92 | $1.98 | FALSE | ($0.06) |

Portland | $1.79 | $1.85 | FALSE | ($0.06) |

St. Louis | $1.99 | $1.81 | TRUE | $0.18 |

In our case there was mentioned that Denver warehouse was closed by strike March 4-19, 2009. This is nearly half of the month. Because of what to compute the 1 month cost on each shipped product for Denver warehouse we just change 5 to 4.5 month.

$ 8,600÷1,005÷4.5≈$ 1.90

As it is shown by our table from 2009 to 2010 cost was reduced only for two warehouses Atlanta and St. Louis. But improvement level for Atlanta is higher: $ 0.62 > $ 0.18.

So that means that Atlanta’s warehouse shows the most improvement.

2. When comparing performance during the first five months of 2010 with performance in 2009, which warehouse shows the poorest change in performance?

Based on our discussion about firs question we can find...