In this assignment you must make recommendations to Red Brand Canners (RBC) about how
they should allocate tomatoes to its three tomato products. The audience is the RBC team. Your
recommendations will be in the form of a short (~ 1 page) memo, supplemented by an appendix
of analysis supporting the recommendations.
Everything you need to know about the case is contained in the write-up. You should not consult
the internet, or other groups to solve the problem. Some aspects of the case may be confusing,
and other parts may be seem to be missing information. If you make assumptions about the
situation, you must clearly state the assumptions in the report.
Questions to be Resolved
The most important goal is to determine how the tomatoes should be allocated and how the
company will profit from that allocation. The summary memo must include that information.
The initial analysis should not include the possibility of acquiring an additional 80,000 lbs of
grade A tomatoes.
There are at least two other issues that are raised from the case:
Was Gordon right to turn down the offer of 80,000 lbs of tomatoes at $0.085/lb. If he
was wrong, what’s the limit on the number of tomatoes he should buy at that price? If he
was right, how much should he have been willing to pay?
Is Myers’ analysis correct? Why or why not?