Answer in chegg not complete please i need requirements complete

XYZ Company for Tea Production XYZ Co is a prominent company in the FMCG industry. It provides 400 different brands spanning 14 categories of home, personal care and foods products. XYZ is now one of the world's biggest companies. Their first business in the Middle East started in Saudi Arabia in the 1930's and by 1978, the first factory was set up in Jeddah to supply the Middle East region with home and personal care products. In Egypt, XYZ established in 1991 a joint venture with an Egyptian company creating one of the largest FMCG businesses in Egypt. In 2000, XYZ established its tea factory in Borg El Arab to produce high quality tea. The total sales for XYZ (the tea factory) were around 50 Million Egyptian pounds during year 2019. The company is operating under a strategy that aims to provide the best tea tasting experience to its customers (differentiation strategy). Forecasting: During the last board of directors meeting, there was a hot discussion about the future of the tea business. The General Manager of the tea business shared the latest sales numbers. He highlighted the constant growth in sales in years 2017, 2018 and 2019. However, the current conditions in Egypt and the world calls for reassessment of their future sales. Thus, the General Manager highlighted the need to reassess the forecasting techniques that they currently use. Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total annual sales (box/year) Year 2017 190000 198000 200000 203000 205000 190000 250000 180000 175000 190000 200000 220000 Year 2018 230000 227000 225000 223000 205000 260000 200000 195000 200000 205000 220000 235000 Year 2019 250000 240000 235000 233000 290000 245000 220000 210000 220000 220000 240000 265000 2401000 2625000 2868000 Capacity: XYZ has 7 production lines with a max. capacity (Actual O/P) of 250,000 box of tea per month. During 2019, the capacity of the factory critically covered the market demand. However, in 2020, the company might face a problem to cover the expected demand. Thus, it seems critical to rethink their capacity for 2020. During the meeting, the operations manager proposed two capacity alternatives to increase their capacity. The first alternative is to buy a new production line. The second alternative is to continue outsourcing to a third party producer. The following table indicates the annual fixed and variable cost per unit of each alternative: Fixed cost Variable cost Buy a new line LE 1,000,000 LE35/Box Outsourcing None LE 40/Box Besides, there is a need to reconsider the use of the company resources while maintaining the same quality of their products. Accordingly, the operations manager proposed a process improvement initiative that reduces processing time for each box (the company operates 8 hr./day), so that output is increased by 10 %, but three additional workers required for each production line. Originally, 10 operators are needed to operate each line (7 production lines). Operator costs are LE 15/hour, and material input is LE 1.5/box and operating line cost LE 200/hr. Overhead is charged at 1.5 times direct labor cost (before and after the proposed initiative). As a member of the improvement team, you are required to assess the feasibility of the proposed initiative with respect to its effect on the productivity of the production lines (assume that the output is evenly distributed among the 7 lines). Production process and quality Generally, production in XYZ company could be considered as a batch processing that provides quite high volume and quite acceptable variety of output. As previously mentioned, there are 7 production lines that are used to produce the 5 different types of products produced by XYZ. Line 1, 2 and 3 are used to produce tea bags (100, 50 and 25 packs). Line 5 is used to produce tea bags as well (but the 10 pack). Line 6 is used to produce the dust while line 7 is used to produce the CTC. Line 4 could produce all the different types of tea. The production processes for the different types of tea produced are as follows: 1. The warehouse dispatches the raw tea after receiving the production order. 2. After the raw tea is dispatched, the certified tea tasters start to propose the needed blend of tea and then the blend preparation starts. 3. The mixing stage starts which includes a magnet, mesh and a mixing drum to guarantee the homogeneity of the blend. 4. The blend then is moved to the sample tank. In the sample tank, samples are taken to do some quality checks. 5. The blend is then moved to the main tanks according to the type of the blend. 6. The blend is then moved to one of the production lines to be processed. 7. The final product is then moved to the packaging stage. Quality is strongly emphasized at XYZ. Employees are trained in quality concepts and the use of quality tools. Training is incorporated on-the-job so that employees can see the practical applications of what they are learning. Employees are responsible for performing in-process quality checks (quality at the source), and to report any defects they discover to their supervisor. In that sense, several quality checks are performed (step 4); moisture content, bulk density, dust content and sensory testing. The close monitoring of step 4 revealed that the company is frequently facing problems with the moisture content of the tea mixture. The accepted norm of the moisture content ranges between 5% to 7%. The standard deviation of the process is 0.5 %, so, the quality team decided to collect a sample data (20 samples each with 5 observations) about the moisture content (in percentage) of step 4 as shown in the following table: 6.7 6.9 2 7.2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 7 6 6.5 6.7 7.9 6 6.5 7.7 6.9 6 6.5 6.7 7.9 6.9 6.8 6.5 6.7 6.9 6.6 7 6.1 6.6 6.6 7 6.1 6.6 7.6 6.5 6.1 7.6 6.6 7 7.1 6.7 6.6 6.6 7 3 7 6.7 6.7 6 6.7 7.4 6.2 6 6.7 6.4 6.2 7 6.7 7.4 7.2 7.2 7 6.7 4 6.9 6.9 6.7 6.4 6.4 6.9 7.3 6.4 6.4 6.9 6.3 6.4 7.4 6.9 7.3 7.4 7.4 7.4 6.9 6.7 5 6.9 7 6.5 6.3 6.7 6 6.9 6.3 6.7 6 6.4 6.3 6.7 6.9 7.4 7.3 7.5 7.3 7 6.8 6.2 7.4 Inventory and order fulfillment The company attempts to minimize the amount of inventory. There is a real need to reassess this strategy for their purchases. The current model of ordering and inventory ignores calculating economic order measures as well as quantity discounts that might be offered. For example, the needs of XYZ from one of its raw materials, the raw tea; being as a crucial ingredient and imported from an international supplier has a total demand of about 300,000 tons/year. Ordering costs are $20000 per order, carrying costs are $20 per ton per year. Orders less than 20,000 tons will cost $25 per ton, 20,001 and less than 30,000 will cost $ 24.7 per ton, and larger orders will cost $ 24.5 per ton. The lead-time needed from placing an order until having the order is around 15 days on average, while the required service level is 95%. Aggregate Planning Planners of the company are about to prepare the aggregate plan that will cover 6 months. Assuming that the company identified the following forecast for period (1-6): Period Forecast Jan Feb March April May June Total 265000 260000 230000 240000 320000 265000 1580000 They now want to evaluate a plan that calls for a steady rate of regular output, mainly using inventory to absorb the uneven demand but allowing some backlog. They intend to start with zero inventory on hand in the first period. They decided to use overtime to make up for lost output. The maximum amount of overtime output per period is 20000 box per month. The regular production cost per box is 35 LE while the overtime cost per box is 40 LE. The holding cost is 9 LE per box per month and the backorder cost is 18 LE per box per month. Required case analysis: As an Operations Management Consultant, XYZ has hired you to help determine how it can improve its operations management by using the available resources. You are required to provide a report and PowerPoint presentation indicating your analysis to the case company and your recommendations regarding the following: Analyze the sales numbers of the company and recommend a forecasting technique to use during the upcoming period. Assess the two alternatives (outsourcing vs insourcing) and determine the appropriate decision based on 2020 forecast. Assess the proposed improvement initiative using the actual demand of 2019. Review and assess the process of inspection undertaken by XYZ. Review and assess the inventory decisions facing XYZ Prepare an aggregate plan for the first 6 months of 2020 based on the given forecasted demand