Pharr Foods Company Case MiniCase 2

| April 29, 2016

Topic: Pharr Foods Company Case MiniCase 2

Order Description
The book reference is “Operations and Supply Chain Management eighth edition”
Read the Pharr Foods Company Case Problem # 13.3 (p. 592-593) and follow the instructions “a-f” given below. To ensure full credit, show detailed calculations and general formulas used in all submitted answers.

1. List and discuss management’s key inventory policy objectives for Pharr Foods.

2. Assuming that the forecasted monthly demand for Year 4 is constant and equal to the overall average demand for Year 3, determine the inventory order quantity and minimum total inventory cost for Pharr’s distributor in Year 4. State all assumptions made in your inventory model calculations.

3. Assuming that the monthly demand is variable, determine the inventory order quantity and minimum total inventory cost for Pharr’s distributor in Year 4. State all assumptions made in your inventory model calculations.

4. Determine the inventory order quantity for each of the three primary ingredients that Pharr Foods orders from its suppliers. State all assumptions made in your inventory model calculations.

5. Discuss whether the distributor’s order quantity seems adequate to meet the seasonal demand pattern for Far Stars. Use diagrams, if necessary, to explain your specific points. Can you identify the causes of the seasonal demand pattern for Far Stars?

6. Discuss the possible impact of the order policies of the food distributor and Pharr Foods on quality management and supply chain management. (Note: A Google search for impact ideas may be useful here.)

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