UNIVERSIDAD DE LA SABANA

OPERATION MANAGEMENT – LEMONADE WORKSHOP

1. A company produces lemonade in bottles of 2 Lt. Suppose a demand of 50,000 L/month and
a real total cost of $19’900.000.\
a. (1.0) Calculate the real unitary cost of each bottle ($/unit).
b. (2.0) How much money is this Company wasting per month?

In the following table you can find the B.O.M. and the cost of each component. Also,
Workforce cost is $1’000.000/month, maintenance cost is $300.000/month and OFC is
$100.000/month.

BOM / Bottle Unitary cost

Lemon 4 units 100 Unit
s
Sugar 20 grams 2000 Kg
Water 2L 50 L
Bottle 1 Unit 100 Unit
Label 1 Unit 50 Unit
Cover 1 Unit 50 Unit

a. (1.0) Calculate the real unitary cost of each bottle ($/unit).

Real Cost
BOM / Bottle Unitary cost Unit conversion Cost per
rate bottle
Lemons 4 units 100 Unit 1 400
Sugar 20 grams 2000 Kg 0.001 40
Water 2 L 50 L 1 100
Bottle 1 Unit 100 Unit 1 100
Label 1 Unit 50 Unit 1 50
Cover 1 Unit 50 Unit 1 50
Total 740

b. (2.0) How much money is this Company wasting per month?

Assuming there is an error in the “real total cost of $19’900.000” meaning that is not
taking into account the Fixed Costs, the waste is $1.400.000, but if there is no error and
it does include the Fixed Cost, then the Waste % is not provided, and there is no way to
calculate it **To be asked to the professor**
 Lemonade
Workshop.xlsx