14 Questions
What is the total cost involved in ordering, customs inspection, arranging for airport pickup, and delivery to the plant per order?
R500
What is the holding cost per unit per year for wool?
R150
What is the lead time for delivery of the wool?
5 working days
What is the primary goal of evaluating costs associated to inventory control of wool?
To improve supply chain efficiencies
What is the purpose of calculating the ideal number of units of wool to order?
To minimize costs
What is a potential limitation of relying solely on the EOQ model for an organisation like P&G?
It does not account for variations in demand
What is the primary industry of Procter & Gamble?
Consumer Goods
In what year was Procter & Gamble founded?
1837
What is the name of the CEO of Procter & Gamble?
Jon R Moeller
Where is the regional office of P&G that assembles and sells premium diapers located?
Malawi
How often does the agent submit an order release for the wool shipment from Asia?
Every 4 weeks
What is the total annual requirement of P&G for the premium diapers?
500 units
What is the per unit cost of the premium diapers for P&G?
R1,500
What is the frequency of P&G's premium diaper production in terms of working days?
2 per working day
Study Notes
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.
Learn about the history and business of Procter & Gamble, a multinational consumer goods corporation. Founded in 1837, P&G is a global leader in the production and marketing of household and personal care products.
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