YOUR TASKS

Documents attached:

$$ Replenishment model scenario $($containing information specific to you$)$

:

Blank template $-$ base case plan

Blank template $-$ contingency plan

$1.(10$ MARKS$)$ Using the BASE CASE PLAN template, build a replenishment plan for your product based on the information provided in the REPLENISHMENT MODEL SCENARIO.

$$ You need to determine how much to order and when, and project what your inventory levels will be until the end of the current planning horizon $($week of Jan. $29,2024).$

$$ You should consider the trade$-$off between holding too much inventory and having enough inventory to meet customer orders.

$2.(5$ MARKS$)$ You have been in touch with your colleagues in the freight forwarding industry.

You hear that there is a backlog of intermodal containers at the port where your product is imported, and that your deliveries might be delayed over the year$-$end holiday season.

$$ Using the CONTINGENCY PLAN template, build a secondary replenishment plan which considers this additional information.

$$ Assume a 'worse$-$case' scenario, in which you are unable to receive any deliveries during the weeks of Dec. $25,2023$ and Jan. $1,2024.$

$3.(5$ MARKS$)$ In$-$class, we have discussed the strategic importance of Supply Chain Management, in areas such as:

$$ Inventory Management: trade$-$off between cost control and customer service : Forecasting: perica, inmation tase in etual stonemorders

$$ Communications: continual, required all along the supply chain

$$ Contingency planning: anticipating what could go wrong, and preparing for it

$$ Vigilance: SCM is a career $($not by accident$)$

$($i$)$ Describe the trade$-$off between cost control and customer service created by the scenario in Question $2.$

$($ii$)$ Considering the factors above, suggest what could be done to improve the inventory management system at your company, to prevent such disruptive events in the future.

REPLENISHMENT MODEL SCENARIO

You work as a Supply Chain Coordinator for a company that operates a distribution centre in Calgary. Your company has established a relationship with a supplier in Croatia, and imports products from Croatia on a regular basis to sell to the local market.

Supply details:

: Modes transportation: intermodal container $($by ship, then over the road$)$

Order quantity: multiples of $500$ units

$$ Supply lead$-$time: $5$ weeks

$$ Note: supply lead time is the elapsed time between when a purchase order is placed, and when the product is delivered to your distribution centre.

You are responsible for managing inventory for a group of products that are considered $"$A$"$ class items $($high priority$).$ On a weekly basis, you monitor current inventory levels, in$-$transit inventory, timing of deliveries, customer sales order levels, and sales forecasts. You are responsible for planning replenishment orders with the supplier, i$.$e$.$ you must determine how much product to order and when the product needs to be delivered.

Shown below is some information pulled from your company's ERP system for one of the products you manage:

$$ Sales forecast:

: Weekly forecast for January $20/$: emberi$023$: $1700$ units

$$ Customer sales order lead$-$time: $2$ weeks

$$ Open sales orders:

$$ Week of Nov. $13$: $1700$ units

$$ Week of Nov. $20$: $1100$ units

$$ Current on$-$site inventory: $9300$ units

$$ Target inventory levels: $6$ weeks of demand, based on the annual forecast for each year

$$ Current purchase orders in$-$transit $($estimated delivery times$)$:

$$ Week of Nov. $13$: $2000$ units

$$ Week of Nov. $20$: $1500$ units

$$ Week of Nov. $27$: $2000$ units

$$ Week of Dec. $4$: $2000$ units

$$ Week of Dec. $11$: $1500$ units

Assignment #$4$: Replenishment Inventory Model

Lead Time $=$

Weeks

Nov. $13$

Nov. $20$

Nov. $27$

Dec. $04$

Dec. $11$

Dec. $18$

Dec. $25$

Jan. $08$

Jan. $15$

BASE CASE PLAN

Jan. $22$

Jan. $29$

Inventory $($Opening$)$

In$-$Stock $/$ On$-$site

$+$ Supply

In$-$Transit $/$ Receipts

New Orders $/$ Receipts

Supply Subtotal

$-$ Demand

Customer Orders

Sales Forecast

Demand Subtotal

$=$ Inventory $($Ending$)$

In$-$Stock $/$ On$-$site

Target Inventory

Variance to Target

New Orders $/$ Placed

Assignment #$4$: Replenishment Inventory Model

Lead Time $=$

Weeks

Nov. $13$

Dec. $04$

Dec. $11$

Dec. $18$

Dec. $25$

Inventory $($Opening$)$

In$-$Stock $/$ On$-$site

$+$ Supply in$-$Transit $/$ Receipts

New Orders $/$ Receipts

Contingency

Supply Subtotal

$-$ Demand

Customer Orders

Sales Forecast

Demand Subtotal

$=$ Inventory $($Ending$)$

In$-$Stock $/$ On$-$site

Target Inventory

Variance$$to$$Target

New