Otto-Van Co. manufactures LCD screens, in Shenzhen China. The product is distributed from a warehouse in Shenzhen through fulfillment centers in San Bernardino, CA, and Newark, NJ for the U.S. market. The demand planner for the company is in the process of working requirements for the following 10 weeks.

He is given the following data. Shenzhen warehouse:

• There are currently (week 0) 25000 units on hand.
• The order quantity equals 25000 units.
• Safety stock is equal to 5000 units.
• Lead time to get the LCDs from factory is 1 week.

San Bernadino fulfillment center:

• There are currently (week 0) 15000 units on hand.
• The shipment order quantity equals 10000 units.
• Safety stock is equal to 2000 units.
• Shipment lead time to get the LCDs from Shenzhen warehouse is 1 week.

Newark fulfillment center:

• There are currently (week 0) 14000 units on hand.
• The shipment order quantity equals 8000 units.
• Safety stock is equal to 1000 units.
• The shipment lead time to get the LCDs from the Shenzhen warehouse is 1 week.

The table below shows the forecasted units (period usage) for the next 10 weeks.

Formulate a Distribution Requirement Planning (DRP) spreadsheet to determine the flow of at the Shenzhen warehouse, San Bernadino fulfillment center, and Newark fulfillment center
 

Transcribed Image Text:

San Bernadino Fulfillment Center Demand Newark Fulfillment Center Demand 1 5753 1 4466 2 7069 2 5917 3 7559 3 3409 4 7349 4 3951 5 5807 5 3785 Week Week 6 6390 6 5504 7 5164 7 5366 8 7455 8 4017 9 6795 9 4727 10 6968 10 3928 San Bernadino Fulfillment Center Demand Newark Fulfillment Center Demand 1 5753 1 4466 2 7069 2 5917 3 7559 3 3409 4 7349 4 3951 5 5807 5 3785 Week Week 6 6390 6 5504 7 5164 7 5366 8 7455 8 4017 9 6795 9 4727 10 6968 10 3928

Answer rating: 100% (QA)

Shenzhen warehouse On hand 25000 lead time 1 week safety stock 5000 order quantity 25000 period Past Due 1 2 3 4 5 6 7 8 9 10 Gross requirement suppos... View the full answer