Johnson's Dairy | MyConsultingCoach

1. How many milk floats are needed?

The candidate should first clarify their understanding of the question and ask for the information required to support a structured approach.

The following information can be given to the candidate upon request:

Each milkman works a five hour daily shift each morning. On average, a milkman delivers one standard one-pint bottle of milk per minute over this five hour period

Number of bottles of milk delivered per milkman per shift = 60 per hour for 5 hours = 300 bottles

Daily total bottle to be delivered = 5000

5000/300 = 16.67

Therefore 17 milk floats are required to deliver all the milk within the five hour time window.

2. Which milk floats to buy?

The candidate should be shown EXHIBIT 1, showing the deals offered by the three milk float suppliers

The following information should be given to the candidate:

The three milk float manufacturers which have provided quotes to Johnson’s for a new fleet are FloatMaster, Dairy Solutions and Crate Hauler.

The different milk floats offered by these suppliers have different capacities, measured in crates.

A crate of milk contains 20 standard one pint bottles.

5000/20 = 250 crates per day

Floatmaster

250/8 = 31.25
Therefore, 32 floats are needed
Cost = 32 x 16 = £512k

Dairy Solutions

250/10 = 25 floats needed
Cost = 25 x 20 = £500k

Crate Hauler

250/15 = 12.5

However, each float can only deliver 300 bottles or 15 crates within the five hour time window
Therefore, we must still have a minimum of 17 floats.

Cost = 17 x 32 = £544k

Dairy Solutions is the lowest cost for a fleet to meet Johnson's requirements. Therefore, we should buy 25 milk floats from Dairy Solutions.