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A manufacturer keeps its finished inventories in a warehouse, which serves three downstream retailers. Assume that the manufacturer's warehouse has an initial inventory of 3000
A manufacturer keeps its finished inventories in a warehouse, which serves three downstream retailers. Assume that the manufacturer's warehouse has an initial inventory of 3000 items and a minimum order quantity of 500 units. The lead time between the manufacturer and the manufacturer's warehouse is one week.
- Review the uploaded Excel file (DRP Workbook.xlsx Download DRP Workbook.xlsx) and use Distribution Requirement Planning (DRP) to determine a replenishment schedule between the retailers and the manufacturer.
Retailer 1 | ||||||||||||
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Gross requirement | 200 | 200 | 150 | 100 | 600 | 200 | 200 | 150 | 40 | |||
On hand | 500 | Projected on hand (start) | ||||||||||
Net requirements | ||||||||||||
Order quantity | 150 | Planned-order receipt | ||||||||||
LT | 2 | Planned-order releases | ||||||||||
Retailer 2 | ||||||||||||
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Gross requirement | 150 | 500 | 150 | 400 | 450 | 100 | 50 | 50 | 400 | |||
On hand | 1000 | Projected on hand (start) | ||||||||||
Net requirements | ||||||||||||
Order quantity | 200 | Planned-order receipt | ||||||||||
LT | 3 | Planned-order releases | ||||||||||
Retailer 2 | ||||||||||||
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Gross requirement | 200 | 100 | 250 | 200 | 400 | 100 | 100 | 150 | 70 | |||
On hand | 300 | Projected on hand (start) | ||||||||||
Net requirements | ||||||||||||
Order quantity | 100 | Planned-order receipt | ||||||||||
LT | 2 | Planned-order releases |
- Assume that the manufacturer's warehouse has planned for a safety stock of 200 units. Fairly assign the remaining inventory of week 10 of the manufacturer's warehouse to the three retailers. Note: perform your available inventory calculations for the retailers based on their week 10's remaining inventory from part a; daily usage calculations should be performed according to the average usage during the 10-week period of part a.
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