Ivec Company The IvecCompany distributes one of its products, avan for urban freight transport, through regional warehouses
Question:
Ivec Company
The IvecCompany distributes one of its products, avan for urban freight transport, through regional warehouses in Buenos Aires and Cordoba. A central warehouse at the Rosario plant distributes the vans to these warehouses in serving the Argentinian market.
Martin Riquelme, the company's distribution planning manager has been thinking to acquirea DRP system to plan the shipments from the plant warehouse to the regional warehouses. Before committing to his software provider, he asked you to evaluate the results for the next 10 weeks. He has collected the followingdata:
Plantwarehouse:
- There are currently (week 0) 1000 units on hand.
- The order quantity equals 1000units.
- Safety stock is equal to 50 units.
- Lead time to get the van from plant is 2 weeks.
Buenos Aires warehouse:
- There are currently (week 0) 650 units on hand.
- The shipment order quantity equals 500units.
- Safety stock is equal to 20 units.
- Shipment lead time to get the van from plant warehouse is 1week.
Cordobawarehouse:
- There are currently (week 0) 400 units on hand.
- Theshipment order quantity equals 400units.
- Safety stock is equal to 10 units.
- Shipment lead time to get the van from plant warehouse is 1week.
The table below shows the forecasted units (period usage)for the next 10 weeks.
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen