Historical demand data in units: January=0 February=0 March=0 April=0 May=0 June=0 July=0 August= 6,225 September=56,521 October=21,233 November=38,419
Question:
Historical demand data in units:
January=0 February=0 March=0 April=0 May=0 June=0 July=0 August= 6,225 September=56,521 October=21,233 November=38,419 December=92,331
Forecast demand data in units:
January=75000 February=114000 March=114000 April=114000 May=114000 June=114000 July=114000 August=114000 September=114000 October=114000 November=114000 December=114000
Data points:
Production rate=60000 units
Demand Rate=100000 units
Batch Size = 500
Pack Size = 120
BFG Batch Size = 1,150,000
Service Level = 92%
Planning Lead Time = 45
Days Production Lead Time = 30 Days
Transit Lead Time = 10 Days
Supply Variability in Days = 10 days
Supplier Lead Time = 15 days
Manufacturing Lead Time = 10 days
QC Lead Time = 0 Days
Demand Variability in Days = 9 days
Demand Variability = 28640 units
Quarter 1 Average Forecast = 101,000 Units
Quarter 2 Average Forecast = 114,000 Units
Quarter 3 Average Forecast = 114,000 Units
Quarter 4 Average Forecast = 114,000 Units
Per Unit Cost = $11.37 Per
Pack Value = $1364.77
Inventory Carrying Cost = $3
Setup cost = $5 Average
Inventory Value in dollars for 12 months = $9346137
Closing Inventory Value in dollars for 12 months = $30669128
Average Inventory Volume over 12 months = 11625 units
Closing Inventory Volume at the end of 12 months = 38147 units
Consider the all above mentioned data points and consider this to be a project where we are trying to reduce the average closing inventory, which is right now at 38147 units using a PFEP model. Please provide accurate mathematical calculations for this. Please consider all the data points!
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra