Procter & Gamble Company Overview

What is the total cost involved in ordering, customs inspection, arranging for airport pickup, and delivery to the plant per order?

What is the holding cost per unit per year for wool?

What is the lead time for delivery of the wool?

What is the primary goal of evaluating costs associated to inventory control of wool?

What is the purpose of calculating the ideal number of units of wool to order?

What is a potential limitation of relying solely on the EOQ model for an organisation like P&G?

What is the primary industry of Procter & Gamble?

In what year was Procter & Gamble founded?

What is the name of the CEO of Procter & Gamble?

Where is the regional office of P&G that assembles and sells premium diapers located?

How often does the agent submit an order release for the wool shipment from Asia?

What is the total annual requirement of P&G for the premium diapers?

What is the per unit cost of the premium diapers for P&G?

What is the frequency of P&G's premium diaper production in terms of working days?

Procter & Gamble Company Overview

Founded in 1837 by William Procter and James Gamble
Multinational consumer goods corporation and one of the largest in its industry
Global leader in production and marketing of household and personal care products

Product Portfolio

Diverse range of consumer goods including:
- Beauty and grooming products
- Health and wellness items
- Household care products
- Baby care products
Well-known brands include:
- Pampers
- Tide
- Gillette
- Pantene
- Olay
- Crest

Scenario: Inventory Control of Wool

Regional office in Malawi assembles and sells premium diapers (Pampers brand)
Supplies procured from various manufacturers worldwide
Critical items, such as wool, come directly from manufacturers in Asia
Annual requirement: 500 units (2 per working day)
Per unit cost: R1,500
Lead time: 5 working days
Ordering costs: R500 per order
Holding costs: R150 per unit per year

Note: Relevant calculations and examples are required to advise on the ideal number of units of wool to order, Reorder Point (ROP), and the limitations of the Economic Order Quantity (EOQ) model for an organization like P&G.