FULL NAME

REPLENISHMENT MODEL SCENARIO

You work as a Supply Chain Coordinator for a company that operates a distribution centre in Montr$$al$.$ Your company has established a relationship with a supplier in Croatia, and imports products from Croatia on a regular basis to sell to the local market.

Supply details:

Country of origin: Croatia

Modes of transportation: intermodal container $($by ship, then over the road$)$

Order quantity: multiples of $800$ units

Supply lead$-$time: $5$ weeks

Note: supply lead time is the elapsed time between when a purchase order is placed, and when the product is delivered to your distribution centre.

You are responsible for managing inventory for a group of products that are considered $"$A$"$ class items $($high importance$).$ On a weekly basis, you monitor current inventory levels, intransit inventory, timing of deliveries, customer sales order levels, and sales forecasts. You are responsible for planning replenishment orders with the supplier, i$.$e$.$ you must determine how much product to order and when the product needs to be delivered.

Shown below is some information pulled from your company's ERP system for one of the products you manage:

Sales demand forecast:

Forecast for November $/$ December $2023$: $1400$ units $/$ week

Forecast for January $2024$: $1500$ units $/$ week

Customer sales orders $($which replace the sales forecast for these $2$ weeks$)$:

Week of Nov. $13$: $1800$ units

Week of Nov. $20$: $800$ units

Current on$-$site inventory: $9300$ units

Target inventory levels: $6$ weeks of demand, based on the monthly forecast

Current purchase order quantities in$-$transit, and estimated delivery times $("0$ units" means non$-$applicable$)$:

Week of Nov. $13$: $1600$ units

Week of Nov. $20$: $800$ units

Week of Nov. $27$: $800$ units

Week of Dec. $4$: $1600$ units

Week of Dec. $11$: $800$ units