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In June 1972, the firm’s annual revenue was $4 million, of which $3 represented sales to the seven Blanchard retail stores.
The current scheduling system, which was initiated in October 1969, calls for bottling of an Economic Order Quantity (EOQ) of an item when the stock level of that item falls below a fixed Reorder Point (ROP). This Reorder Point (ROP) trigger is equal to 3.5 weeks’ worth of the average weekly demand throughout the year ending October 31, 1969. One of the issues faced by Blanchard was that the Reorder Point (ROP) is not adjusted to take care of annual demand change over the past 2...
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