You have recently been hired by Carolina Coat Company to work in their supply chain management

department. Carolina Coat Company is a manufacturer located in Asheville, NC. You must sift through

the information available from Carolina Coat to do your job. The problems below are just a few of the

many assignments you need to complete in your new position. The main distributor of Carolina Coats Company has just received their forecast from two primary customers, one in Chicago and one in St. Louis. Carolina works closely with their distributor to determine how much product needs to be ordered and when.

If Carolina Coat is the manufacturer, complete the DRP schedule:

Carolina believes in can reduce costs and improve profits by lowering its COGS. They have presented you with the following information:

o Sales $25,000,000

o COGS $18,100,000

o Net Profit $1,425,000

If the company can reduce their COGS by 7.5%, what is the resulting increase in profit?

How much would they have to increase sales to match this same increase in profit?

Feb Mar April May June July Aug TOTAL Demand: Jan Forecast from Chicago 1500 2,100 1.600 1.000 600 600 500 400 St. 1,000 1,000 1,000 900 700 600 500 100 Forecast from Loius Safety Stock 300 LT mi-1 Distributor Chicago Min order and OQ 300 Current 1 2 3 4 5 6 7 8 Forecasted Demand 1200 Scheduled receipts (product in-transit) Planned Receipts 900 Projected On-Hand Ending Planned orders Safety Stock 600 LT mi-2 Min order and oad 600 Distributor St. Louis Current 1 2 3 4 5 6 7 8 Demand Forecasted Scheduled receipts (product in-transit) Planned Receipts Projected on-Hand Ending 1200 0 Planned orders Safety Stock 500 Manufacturer Current 1 Forecasted Demand from Distribution Warehouses 300 Projected On-Hand Ending Projected Manufacturing