How would you determine the ideal warehouse location? What factors would go into your choice of locations? Describe at least 3 factors.
Describe the pros and cons of setting up your own trucking fleet to take product from your factory to the new warehouse vs. using common carriers.
Given the high dollar value of your inventory, how can you ensure accuracy of both purchased raw material inventory (in your factory) as well as of the finished product itself in your factory and at the new warehouse?
How will planning for equipment capacity needs been done if you use a forecast-based system versus a demand management (JIT) -based system?
Create a finished goods production plan MRP (and component B procurement plan) given the following:
Production cycle time = 1 month
Each finished good item requires 2 Part B’s; part B has a 1 month procurement lead time
Beginning finished product inventory is 1,000
Forecasted sales are as follows:
Month 1: 1,000
Month 2: 1,100
Month 3: 1,150
Month 4: 1,200
Month 5: 1,200
Month 6: 1,300
Safety Stock: On the first day of each month, you want to have that month’s sales already in inventory
Capacity of the plant is 1,300 units
Download the blank MRP template to complete your MRP.