11. The Cranky Tea Company performs sales forecasting on a national basis. Each month it prepares a...
Question:
11. The Cranky Tea Company performs sales forecasting on a national basis. Each month it prepares a sales forecast of monthly sales for the coming year for each of the firm’s end products. At each of the firm’s three distribution warehouses, distribution requirements planning records are maintained for the individual products. The national sales forecast for Constant Torment, the company’s best selling product, is 4,000 units per four-week period. The sales of this product at each of the three warehouses are split as follows: 40 percent from warehouse A, 35 percent from warehouse B, and 25 percent from warehouse C. An analysis of the sales history of Constant Torment at warehouse C indicates weekly sales of this product are distributed as follows: 10 percent in week 1, 25 percent in week 2, 45 percent in week 3, and 20 percent in week 4 in a monthly period.
Complete the following DRP record for Constant Torment at Warehouse C.
Month 1 2 Week Week Constant Torment / Warehouse C 1 2 3 4 1 2 3 4 Forecast requirements In transit 260 445 Projected available balance 105 Planned shipments Q = LFL; SS = 0; LT = 3 weeks.
Step by Step Answer:
Manufacturing Planning And Control For Supply Chain Management
ISBN: 9780073377827
6th Edition
Authors: F. Robert Jacobs, William Berry, David Clay Whybark, Thomas Vollmann