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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.

  1. 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
  1. 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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