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YouthTrack is a bicycle manufacturer specializing in midrange and high-end road bikes for children and teens. The company was founded in 2016 with the launch of a single model of bike, the RoadRacer, a reasonably priced entry-level bike that became a popular Christmas gift. In 2018, YouthTrack expanded to two additional models of bike with a goal to capture higher-end markets. They've seen strong growth in the years from 2019 to 2022, and in 2022 they began to reach their available capacity in their manufacturing sites. As a result, they believe it is time to launch an internal Sales & Operations Planning (S&OP) process.

Assignment: For simplicity, we will assume the year 2022 is complete, and you are performing this meeting in early January 2023 As the planning team for YouthTrack, you are being tasked with launching the very first S&OP meeting for the business. You have access to historical sales data for all three products, as well as some key business insights and constraints (Appendix 1)

Your S&OP meeting will include your colleagues in Operations and Sales, and should include:

1. A review of the future forecasts for the products

2. An assessment of your confidence in the forecasts

3. A sourcing recommendation for 2023, including monthly in-house and outsourced production quantities.

Hints: It is recommended that you complete some independent research on S&OP processes to structure your presentation. During your preparations, you may find some missing information. In this case, make a reasonable assumption and add it to your S&OP slides so that you can discuss with your stakeholders! Key stakeholders who will be present in your meeting include sales, marketing, finance, production

Appendix 1 - Key Business Data for YouthTrack

YouthTrack Product Portfolio

Bicycle Model Launch Year Retail Price RoadRacer 2016 $250 RR-Elite 2019 $525 Model 3000 2019 $65

Year Total Units Sold Total Revenue 2020 48,637 $ 19,817,225 2021 53,130 $ 22,950,575 2022 58,284 $ 26,646,025

Committed Capacity and costs for 2023: *YouthTrack can use a mix of in-house and outsourced manufacturing, and would like to understand the best plan of action Available Capacity RoadRacer RR-Elite Model 3000 In-House Manufacturing 5,200 units/month $125 $325 $400 Outsourced Manufacturing Unlimited $190 $395 $500 Production data for 2023: RoadRacer RR-Elite Model 3000 Inventory holding cost per month $ 25.00 $ 65.00 $ 95.00 Lost sales cost per unit* $ 190.00 $ 395.00 $ 500.00 Overtime cost per unit $ 15.00 $ 15.00 $ 15.00 Undertime cost per unit $ 5.00 $ 5.00 $ 5.00

Normal production rate (units/month) 1,800 2,200 1,200 2022 ending inventory 350 100 100

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