sing the data in case Exhibit $4$ and the $2012$ annual demand, calculate the EOQ and ROP quantities for

the five SKUs scheduled to be produced in the last week of June. How do these amounts compare with

those calculated in $2011?$ Compare the increases in EOQs with the increases in annual demand.

$2.$ Brodie is uncertain if the costs presented in case Exhibit $2$ are appropriate for determining the EOQs.

What changes would you recommend, and why? Should the cost of the three idle part time workers be

included when the production line is down? Using the $2012$ annual demand, and your recommendations,

recalculate the EOQs for the five SKUs.

$3.$ Compare your results with those obtained using the data in case Exhibit $2.$ What do you attribute the

differences to$?$ After speaking to Jake and Josh, Brodie is now not sure if the EOQ model is the most

appropriate for the current production process. Evaluate the scheduling method that Jake and Josh are

using. Why are they not following the established system?

$4.$ Compare the established EOQ$/$ROP procedure $($described in case Exhibit $2)$ with the one that Jake and

Josh are using. Which system do you prefer? What improvements do you recommend?

$5.$ What recommendations should Brodie present to Jana Fremont at his next meeting with her?