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Section A- case questions:
1. Calculate the available practical capacity in minutes for the Production and Distribution Depts. and determine the capacity cost rate for each of Berendsen`s resources.
2. Provide the time equations for the activities, and report on excess capacity (use minutes)
3. Calculate the EBIT (earnings before interest and taxes) per customer using TDABC (include excess capacity)
4. What are the implications to Berendsen from a cost-to-serve perspective?
5. Derive an offer for Laki and Bifrost given the implications of Q4.
6. Prepare a budget for 2015 and draw conclusions on the supplied capacity.
(6 x 10%)
Write a short literature review / discussion piece (~1000 words) critically assessing the use of time-based ABC techniques in determining SC costs (including those of sourcing from a supplier).