Brant Freezer Company Warehouse Costs Best Results

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Business Finance

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Case 3-1: Brant Freezer Company

Read Case 3.1, Brant Freezer Company. Using the table provided for the units shipped and warehouse costs for all eight warehouses, identify the warehouse that had the best results for the Brant Company and explain the criterion used to determine which warehouse had the best results.

Lastly, the year 2010 is nearly half over, and J.Q. is told to present the forecasted expenditures for each of the eight warehouses for the last six months in 2010. Do his work for him. Recommend steps to improve Return on Assets (ROA) for the company.

The Brant Freezer Company paper:

(1200 Words)

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Running Head: WAREHOUSE COSTS BEST RESULTS

Warehouse Costs Best Results- Case of Brant Freezer Company
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WAREHOUSE COSTS BEST RESULTS

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Brant Freezer Company manufactures industrial freezers which come in one size and are
distributed through public warehouses, (Kaplan, Robert and Norton, 1996). The performance
during the first five months of 2010 and during the first months of 2009 can be determined by the
change of cost per unit of goods shipped. From the data provided the one for St. Louis has
dropped from 9.97 to 9.07. For the other states the figure has increases and for this reason St.
Louis shows the most improvement.
The same criterion is used to show the warehouse that shows the poorest change in
performance, that is, we establish the cost per unit shipped. From the data provided the cost per
unit shipped as increased from 9.06 in 2009 to 11.95 in 2010 for the warehouse in Fargo which is
the highest increased, that is an increase by 2.88. For this reason we conclude that Fargo has the
poorest change in performance. The warehouse that does the best job for Brant Freezer Company
is the one that has the highest turnover yet it has reduced increase in operational costs. The
warehouse in Chicago is the best performing since it is supplied with the most units and there is
only a slight increase in operation costs. This means it is able to cater for the increased
operations cost by the increased sales.
The performance of the warehouses is based on the number of the units they receive and
how fast they distribute them or sale while at the same time optimum performance is bas...

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