Midwest Office Products - 678 Words

Case Study Analysis 2 - Midwest Office Products Questions: Based on the interviews and the data in the case, calculate: a) The cost of processing cartons through the facility. The costs that occur through the facility are warehouse expenses (excluding personnel) and facility/warehouse personnel expenses (excluding truck drivers). The total cost of processing cartons through the facility is $4,320,000. It represents a cost per unit of $54/carton ($29 for warehouse personnel expenses and $25 for warehouse expenses). see table exhibit 1 b) The cost of entering electronic and manual customer orders The cost of entering each electronic customer order is $3.00 ($3.50 based on productive hours). The cost of†¦show more content†¦Midwest Office product should focus on storing and processing the cartons. Their desktop delivery option is not yet performant enough to generate profit. MOP should consider Desktop Delivery Option only for large and regular customer. This way deliveries will be centralised and optimised. Also, MOP should boost its electronic orders which would decrease sharply the cost of processing orders and the Operator total hours (so the personnelShow MoreRelatedMidwest Office Products775 Words   |  4 Pagesin question two reveal that Midwest ¡Ã‚ ¦s existing cost system distorted cost by assigning too much cost to the order 1, 3 5 and not enough cost to the order 2 4. In other words, order 2 4 exhibit lower costs under the existing system than under the ABC system. This could explain the loss Midwest Office Products faced for the year 2003. On the other hand, order 1, 3 5 have lower costs under the ABC system than the existing system. This means Midwest Office Products ¡Ã‚ ¦ competitors could sell theirRead MoreMidwest Office Products1142 Words   |  5 PagesMidwest Office Products Aaron Wilson, Brittni Henson, Dennie Smyth amp; Joshua Boatright Midwest Office Products Case ACCT. 6233 October 15, 2012 1. Based on the interviews and data in the case, estimate: a. The cost of processing cartons through the facility The two costs of processing cartons through the facility are warehouse costs and warehouse personnel costs. The total processing costs are $54/carton. Cartons/yr | 80000 | Commercial Freight | 75000 | Desktop Delivery | 5000Read MoreMidwest Office Products Essay680 Words   |  3 PagesQuestions for Midwest Office Products 1. Based on the interviews and data in the case, estimate: a. The cost of processing cartons through the facility 80000 total cartons Warehouse expenses = $2000000 Warehouse personnel expenses = $2570000-$250000 (truck driver expenses) = $2320000 Total warehouse processing expenses: $2000000 + $2320000 = $4,320,000 $4320000/80000= $54/carton b. The cost of entering electronic and manual customer orders Manual: .15 hours setup time, .075Read MoreMidwest Office Products Case Essay701 Words   |  3 PagesMidwest Office Products 1. Calculate the following a. The cost of processing cartons through the facility i. Warehouse Expense ($2,000,000) + [Personnel Expense – Delivery Driver Expense] ($2,320,000) = $4,320,000 1. $4,320,000 / 80,0000 = $54/carton Cost of entering customer orders | | Order entry expenses | | $840,000 | | hours worked per employee (16) | 1,500 | | | Total hours worked | 24,000 | | | Cost per hour worked | | $35 | | | Read MoreHeartland Company Essay772 Words   |  4 Pagesï » ¿Heartland Company Introduction: On April 19, 2008, Walter A. Walsh, Supply Management Manager for Heartland Company, met with one of his buyers, Olivia Newcomb, in his office. They discussed her Heartland Company cost reduction goals for bearing #B02326620. After the meeting Mr. Walsh began wondering if changes should be made to the way suppliers were being evaluated and how business should be allocated among suppliers performing at different levels. 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