Supply Chain Management PRODUCTION CASE PROBLEM STATEMENT: A SCM Manager of a Beverage Manufacturing company is required to come up with the least landed cost for the demand requirements of certain SKU in one region in the Philippines. There are three (3) sources of major raw materials abroad. With the additional data given on the attached sheet, please provide your production plan. There are also 3 Plants to be considered in producing the product namely Fast, Furious and Speed. FORECAST: Sales dept is projecting a monthly volume requirements of region elective of 2400k cases of product X. Due to forecast inaccuracies, sales is requiring a 3 days and 7 days minimum and maximum inventory level at sales offices respectively. IN BOUND PROCUREMENT DATA: Major Raw Mat - Raw Mat x accounts for 75% of total RM Cost 25% of other raw mat cost are source locally and have negligible impact 1000kgs of rm x per 1500 cases product X Quality of three source is the same FTH = Ph0.50/kg/km Holding cost is 40% per annum Landed cost/ton excluding tariff 1USD =Ph45 Ordering cost is Ph25k /order Payment upon placement of P.O. To Suppliers Raw Mat X Landed Cost/Ton @ Phil Tariff LC + Source Port (USD) (%) Tariff Lead Time Suppliers Reliability Asia 30.88 3 31.81 23 Days Ave 7 Days Delay / Shipment Europe 27.62 15 31.74 90 Days Zero Delay USA 27.52 15 31.63 60 Days Zero Delay