2021

Case Study 1
BA 545
JENNIFER GAULT, STPEHANIE CROSSON, TIFFANY REAVES
 1. Introduction
o Quantity of Listerine Cool Mint to order.
o Efficiency in the ordering process.
2. Background
o Wal-Mart reached out to the Johnson & Johnson representative regarding ordering products in a more
efficient manner.
o Walmart focuses on Listerine Cool Mint sales over the last 30 weeks to better understand the demand and
quantity needed to order.
o Sales/Order analysis using Figure 12.3, Table 12.6 and Table 12.7 to gather data to apply to EOQ
modeling.
3. Proposed Solution
o Explain why this solution was chosen
o Support this solution with solid evidence
o Concepts from class (text readings, discussions, lectures)
o Outside research
4. Recommendations
o The EOQ is 111 units. Cool Mint Listerine comes in cases. Walmart would need to order 10 cases (120
units) for the lowest overall cost. Ordering 10 cases is recommended so that the order doesn't have to be
adjusted each time it is placed. The demand is fluctuating a great deal. This will allow Wal-Mart to keep
enough on hand to meet the demand (spikes and lulls) and to be economically/fiscally sustainable while
keeping the supply chain steady.

BA 545 Case Study 1

Listerine Cool Mint                
Annual Demand (units) 639.6 639.6 639.6 639.6 639.6 639.6 639.6 639.6
Cost/Order ($) 6 6 6 6 6 6 6 6
Holding cost/unit/year
($) 0.625 0.625 0.625 0.625 0.625 0.625 0.625 0.625
                 
                Pallet
Cases   1 2 3 4 10 24 120
110.816
EOQ 6 12 24 36 48 120 288 1440
5.77169 17.7666 2.22083 0.44416
Orders/year 8 53.3 26.65 7 13.325 5.33 3 7
0.17325 0.01876 0.03752 0.05628 0.07504 0.18761 0.45028 2.25140
Time interval 9 2 3 5 7 7 1 7
63.2396 13.6960 20.5440 27.3921 164.352 821.763
  2 6.84803 6 9 2 68.4803 7 6
Annual Inventory Cost $34.63 $3.75 $7.50 $11.25 $15.00 $37.50 $90.00 $450.00
Annual Order cost $34.63 $319.80 $159.90 $106.60 $79.95 $31.98 $13.33 $2.67
Total Cost $69.26 $323.55 $167.40 $117.85 $94.95 $69.48 $103.33 $452.67
                 
EOQ=Q=SQRT2DCo/Ch