Ivec Company

The IvecCompany distributes one of its products, avan for urban freight transport, through regional warehouses in Buenos Aires and Cordoba. A central warehouse at the Rosario plant distributes the vans to these warehouses in serving the Argentinian market.

Martin Riquelme, the company's distribution planning manager has been thinking to acquirea DRP system to plan the shipments from the plant warehouse to the regional warehouses. Before committing to his software provider, he asked you to evaluate the results for the next 10 weeks. He has collected the followingdata:

Plantwarehouse:

• There are currently (week 0) 1000 units on hand.
• The order quantity equals 1000units.
• Safety stock is equal to 50 units.
• Lead time to get the van from plant is 2 weeks.

Buenos Aires warehouse:

• There are currently (week 0) 650 units on hand.
• The shipment order quantity equals 500units.
• Safety stock is equal to 20 units.
• Shipment lead time to get the van from plant warehouse is 1week.

Cordobawarehouse:

• There are currently (week 0) 400 units on hand.
• Theshipment order quantity equals 400units.
• Safety stock is equal to 10 units.
• Shipment lead time to get the van from plant warehouse is 1week.

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

Buenos Aires Warehouse Period Usage Cordoba Warehouse Period Usage 1 2 314 309 1 2 194 190 3 302 3 192 4 309 4 220 Week 5 284 6 305 Week 5 198 6 185 7 290 7 204 8 313 8 200 9 303 10 300 9 10 220 183