Lorex Pharmaceuticals

Group Members:
1. Abhishek Singh MBA08253
2. Vaishnavi Rathi MBA08215
3. Sonal Sinha MBA08197
4. Vishavjeet Singh MBA08227
 CONTENTS
• Case Highlights

• Problems

• Solution

• Conclusion
 Case Highlights
:- Carter Blakely - manager of quality assurance; pleased with the
progress of Linatol production
:- Linatol; treatment of high blood pressure; eight years of product
testing
:- Marketing division; the initial offering of Linatol would be in a
sealed 10 ounce bottle; 12 bottles in a case
:- One task remaining for Blakely; select target amount to be filled in
the 10 ounce bottle
 Given data
1. Per bottle capacity: 10 ounce

2. Wholesale price per case for

Commercial bottles: $186
Second bottles: $148.8
SP of second bottle=0.8*SP of
commercial bottle.

3. Labour cost per hour: $12.80

4. Overhead charges per hour:

$89.5
Problems
:- The 10.2 ounce target chosen was random without economic consideration

:- Underfilled bottles becoming clogged with rejected bottles

:- Set a fill target, considering revenues and costs of refilling the bottles
 Normal
Distribution
3

2.5 Bell curve

2

1.5

0.5

0
1 12 23 34 45 56 67 78 89 100111122133144
 Statistical data
Mean 10.198205
Median 10.19014427
Standard Deviation 0.162597471
Sample Variance 0.026437938
Kurtosis 0.771427502
Skewness 0.245359681
Range 0.997363088
Minimum 9.758370249
Maximum 10.75573334
Sum 1468.54152
Count 144
 Solutions
To get an optimal filling The filling target which would
target, we shall choose a give the best revenue or returns,
range of targets should be taken as an optimal
target and should start producing
Litanol at that target set,

We should try to analyse the

revenues and costs at each
amount of Litanol in the bottle;
cost of rework as well in case of
underfilled
Statistics
Thank
You