Brant Case Analysis

CASE: BRANT FREEZER COMPANY Question 1: When looking at execution during the initial five months of 2004 with execution in 2003, which distribution center shows the most improvement? St. Louis is the just one indicating any improvement, utilizing cost per unit sent as the presentation basis. The expense for the initial five months of 2003 was $9. 97 and for the initial five months of 2004, it tumbled to $9. 07. Question 2: When looking at execution during the initial five months of 2004 with execution in 2003, which stockroom shows the most unfortunate change in performance?The most exceedingly awful change is the company’s own distribution center (situated in Fargo), where costs per unit dispatched expanded 31%. Among the open distribution centers utilized, Denver was the most noticeably awful regarding cost per unit took care of. It is additionally the most costly open distribution center that Brant employments. Question 3: When examinations are made among each of the eight stockrooms, which one do you think does the best employment for the Brant Company? What standards did you use? Why? Utilizing the expense per unit dealt with basis, St.Louis does the best employment, firmly followed by Chicago. Question 4: J. Q. is forceful and will suggest that his dad drop the agreement with one of the stockrooms and give that business to a contending distribution center in a similar city. J. Q. feels that when expression of this gets around, different distribution centers they use will â€Å"shape up. † Which of the seven should J. Q. suggest be dropped? Why? Denver has the most minimal volume and most noteworthy unit costs among all the open stockrooms used.In expansion, it had been shut by a strike which more likely than not troubled the Brant Company. It might be that the distribution center workers’ associations are solid in the Denver territory. J. Q. ought to most likely look at rates and profitability proportions of other Denver distribution centers before choosing to drop its present stockroom there. Question 5: The year 2004 is about half finished. J. Q. is advised to decide how much the firm is probably going to spend for warehousing at every one of the eight distribution centers throughout the previous a half year of 2004.Do his work for him. There isn't sufficient data to do an exact estimate. J. Q. accept that the extent of expenses happening during the initial five months of 2003 ought to be in a similar extent in 2004. (1)â â â â â â â â â â  â â â â â (2)â â â â â â â â â â â â â â â â (3)â â â â â â â  â â â â (4) Warehouse location| % 2003 expenses happening in initial five months| Actual expenses for initial five months of 2004 ($)| Projected all out expenses in 2004 ($)| Projected expenses over the most recent a half year of 2004 ($)| Atlanta| 22. 88| 40,228| 175,822| 116,204|Boston| 44. 00| 29,416| 66,885| 32,085| Chicago| 53. 43| 141,222| 264,312| 105,556 | Denver| 35. 00| 14,900| 42,571| 23,714| Fargo| 54. 00| 9,605| 17,787| 7,012| Los Angeles| 72. 20| 93,280| 129,197| 30,781| Portland| 49. 30| 42,616| 86,442| 37,559| St. Louis| 44. 80| 19,191| 42,837| 20,265| The anticipated expenses in 2004 (section 3) are determined by separating the genuine expenses for the initial five months of 2004 (segment 2) by the percent of 2003 costs that happened in the initial five months (segment 1).For model, Atlanta’s real 2004 expenses of $40,228 partitioned by 2003’s 22. 88% yields anticipated 2004 expenses of roughly $175,822. The anticipated expenses over the most recent a half year of 2004 (segment 4) are determined by taking away the real expenses for the initial five months of 2004 (section 2) from 2004’s anticipated all out costs (segment 3). This gives us the anticipated expenses throughout the previous seven months of 2004. Be that as it may, we are just keen on the most recent a half year of 2004, so this number is du plicated by 6/7, or . 857.Continuing with Atlanta, 2004’s anticipated all out expenses of $175,822 less the initial five months’ real expenses of $40,228 rises to $135,394. Duplicating this by 6/7 yields anticipated six months’ expenses of around $116,204. Question 6: When contrasting 2003 figures and the 2004 figures appeared in Exhibit 13-A, the sum planned for each distribution center in 2004 was more noteworthy than genuine 2003 expenses. What amount of the expansion is brought about by expanded volume of specialty (units sent) and what amount by swelling? There are a few different ways to move toward this question.One includes computing the volume distinction and expansion contrast for each distribution center, as follows: Volume distinction = 2003 unit costs x (2004 units transported †2003 units sent) Inflation distinction = 2004 units dispatched x (2004 unit costs †2003 unit costs) For instance, Atlanta’s volume and swelling contrasts are : Volume distinction: $8. 99 x (18,000 †17,431) = $8. 99 x 569 = $5,115 Inflation contrast: 18,000 x ($9. 97 †$8. 99) = 18,000 x $. 98 = $17,640 Question 7: Prepare the firm’s 2005 warehousing financial plan, appearing for each stockroom the foreseen number of units to be transported and the costs.Again, this should be possible in a few different ways. One is to accept that the 2004 to 2005 increments will be the very same sum as the 2003 to 2004 increments (with units sent adjusted to the closest hundred, and costs adjusted to the closest $500). This would yield the accompanying outcomes: Warehouse location| Differences in units sent b/w 2003 and 2004| Units shippedâ in 2004| Projected units dispatched in 2005| Difference in distribution center costs b/w 2003 and 2004 ($)| Warehouse costs in 2004 ($)| Projected stockroom costs in 2005 ($)| Atlanta| 600| 18,000| 18,600| 21,000| 178,000| 199,000| Boston| 300| 7,200| 7,500| 9,500| 73,000| 82,500|Chicago| 1,900| 30,00 0| 31,900| 38,500| 285,000| 323,500| Denver| 100| 3,100| 3,200| 3,000| 31,000| 34,000| Fargo| 0| 2,000| 500| 17,000| 17,500| Los Angeles| 500| 17,000| 17,500| 24,000| 176,000| 200,000| Portland| 700| 9,000| 9,700| 12,000| 85,000| 97,000| St. Louis| 2,100| 8,000| 10,100| 4,000| 56,000| 60,000| Another strategy would utilize rate changes. Question 8: While going to classes at the college, J.Q. had scholarly of coordinations organizations. Should Brant Freezer Company endeavor to go into an organization relationship with these distribution centers? Assuming this is the case, what approach would it be a good idea for it to utilize? Expecting that an association approach was to be utilized, Brant would need to think about a type of sharing of potential dangers and benefits. Spur of the moment, the case doesn't give a lot of data to go on, other than cost regulation or decrease is an issue.