drp worksheet.
xls
ITEM 4682
DC A (SKU 4682A) WEEK 1 2 3 4 5
Transit Time: 2 Weeks GROSS RQMTS 25 30 55 50 30
Order Quantity: 100 SCHED RECEIPTS 100 100
Safety Stock: 10 Projected On Hand 50 25 95 40 90 60
PLANNED ORDERS 100 0 100 0 0
Note: what we plan to order this week, we recv it after 2 weeks bcz. transit time is 2 weeks.
Projected On Hand for a wk = Previous wk projected OH - Gross Req of this wk + Sched. Rcpt. Of this wk
So, for Wk1= 50-25+0 = 25
Wk2 = 25-30+100 = 95
Wk3 = 95-55+0 = 40
Wk4 = 40-50+100 = 90
Wk5 = 90-30+0 = 60
DC B (SKU 4682B) WEEK 1 2 3 4 5
Transit Time: 1 Week GROSS RQMTS 95 85 100 300 300
Order Quantity: 200 SCHED RECEIPTS 200 400 200
Safety Stock: 32 Projected On Hand 130 35 150 50 150 50
PLANNED ORDERS 200 0 400 200
Note: what we plan to order this week, we recv it next week bcz. transit time is 1 week.
Projected On Hand for a wk = Previous wk projected OH - Gross Req of this wk + Sched. Rcpt. Of this wk
So, for Wk1= 130-95+0 = 35
Wk2 = 35-85+200 = 150
Wk3 = 150-100+0 = 50
Wk4 = 50-300+400 = 150
Wk5 = 150-300+200 = 50
PLANT W/H (Item4682) WEEK 1 2 3 4 5
Production/Transit Time: 2 Wks GROSS RQMTS 200 100 400 200 0
Batch Quantity: 500 SCHED RECEIPTS 300 500
Safety Stock: 0 Projected On Hand 400 500 400 500 300 300
PLANNED PROD'N 300 500
Note: In plant level what we plan to produce this week, we recv it after 2 weeks bcz. transit time is 2 weeks.
Gross Req. of Plant = Planned Order of (DC A + DC B)
So, for Wk1= 0+200 = 200
Wk2 = 100+0 = 100
Wk3 = 0+400 = 400
Wk4 = 0+200 = 200
Wk5 = 0+0 = 0
So, Projected On Hand for Wk1= 400-200+300 = 500
Wk2 = 500-100+0 = 400
Wk3 = 400-400+500 = 500
Wk4 = 500-200+0 = 300
Wk5 = 300-0+0 = 300
HW Question:
ITEM 2367
DC A WEEK 1 2 3 4 5 6
Transit Time: 1 Week GROSS RQMTS 60 60 60 70 70 80
Order Quantity: 100 SCHED RECEIPTS 100
TARGET MIN INV This varies, unlike fixed SS used
in class demo.
Safety Stock: .5 FWS Projected On Hand 50
PLANNED ORDERS 100
DC B WEEK 1 2 3 4 5 6
Transit Time: 2 Weeks GROSS RQMTS 80 90 100 120 150 180
Order Quantity: 200 SCHED RECEIPTS 200
TARGET MIN INV This varies, unlike fixed SS used
in class demo.
Safety Stock: 1 FWS Projected On Hand 100
PLANNED ORDERS 200
CENTRAL SUPPLY WEEK 1 2 3 4 5
Transit Time: 2 Weeks GROSS RQMTS
Order Quantity: 500 SCHED RECEIPTS
Safety Stock = 0 Projected On Hand 400
PLANNED ORDERS
Remember: FWS is Foward Weeks Supply
HW Answer:
ITEM 2367
DC A WEEK 1 2 3 4 5 6
Transit Time: 1 Week GROSS RQMTS 60 60 60 70 70 80
Order Quantity: 100 SCHED RECEIPTS 100 100 100 100
TARGET MIN INV 30 30 35 35 40
Safety Stock: .5 FWS Projected On Hand 50 90 130 70 100 130
PLANNED ORDERS 100 100 100 100
DC B WEEK 1 2 3 4 5 6
Transit Time: 2 Weeks GROSS RQMTS 80 90 100 120 150 180
Order Quantity: 200 SCHED RECEIPTS 200 200 200 200
For DC B in Week 1, you may
TARGET MIN INV 90 100 120 150 180 want to have a scheduled receipt
arrive to prevent falling below SS
Safety Stock: 1 FWS Projected On Hand 100 20 130 230 310 360 but you can not go "back in time"
to place the order.
PLANNED ORDERS 200 200 200 200
CENTRAL SUPPLY WEEK 1 2 3 4 5
Transit Time: 2 Weeks GROSS RQMTS 300 200 300 100 0
Order Quantity: 500 SCHED RECEIPTS 500
Safety Stock = 0 Projected On Hand 400 100 400 100 0 0
PLANNED ORDERS 500
For central supply, since we are reviewing the DRP in Week "0" we can plan an order for arrival in Week 2. Would this be
acceptable if the LT = 3 weeks?
"At DC A level why do we need planned order in week 1 as I am meeting the minimum requirement of safety stock for week 2?"
This example usually generates a question or 2 from students.
The "rule" suggests that we only order if we will fall below the SS target. However, in practice, a planner may elect to place an order if we are at or
near the SS level. This would be based on their experience and may even reflect recent experience with forecast accuracy or on-time shipment
performance. However, for exam purposes, you may stick with the rule.
Bonus Question 1:
Complete the following DRP Plan. The DCs and Factory all work on a 5-day per week schedule.
Calgary DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 80 80 80 120 90 80 80
Order Quantity: 100 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1.2 FWS Projected On Hand 180
PLANNED ORDER
RELEASE
Montreal DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 180 180 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1 FWS Projected On Hand 272
PLANNED ORDER
RELEASE
Factory in Dallas, Texas WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS
Order Quantity: 500 SCHED RECEIPTS 500 500
Safety Stock = 0 Projected On Hand 0
PLANNED ORDER
RELEASE
Hint: Think about 1.2 FWS...this is a bit tricky.
Bonus Answer :1 The DCs and Factory all work on a 5-day per week schedule.
Calgary DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 80 80 80 120 90 80 80
Order Quantity: 100 SCHED RECEIPTS 0 100 100 100 100
TARGET MIN INV 96 104 138 106 96
Safety Stock: 1.2 FWS Projected On Hand 180 100 120 140 120 130
PLANNED ORDER
100 100 100 100
RELEASE
Montreal DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 180 180 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0 400 200 400 200
TARGET MIN INV 180 200 240 300 200
Safety Stock: 1 FWS Projected On Hand 272 92 312 312 472 372
PLANNED ORDER
400 200 400 200
RELEASE
"In week 1 we need to have minimum inventory of 180 but if I do not order today
I will go below my safety stock after satisfying my forecast demand as POH goes below 180 to 92. Why can't we schedule an order?"
In the HW QUESTION, you notice that I provided planned orders that were already in-process for DC A & DC B.
In the case of the Montreal DC bonus question, the assumption is that you are already in the time bucket just prior to Period 1, and as such,
it is too late to schedule an inbound replenishment which requires 1 week minimum.
Factory in Dallas, Texas WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS 500 300 500 300
Order Quantity: 500 SCHED RECEIPTS 500 500 500 500
Safety Stock = 0 Projected On Hand 0 0 200 200 400
PLANNED ORDER
500 500
RELEASE
Bonus Question 2:
Complete the following DRP Plan. The DCs and Factory all work on a 5-day per week schedule.
Montreal DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 80 80 80 120 90 80 80
Order Quantity: 200 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1.2 FWS Projected On Hand 180
PLANNED ORDER
200
RELEASE
Calgary DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 200 200 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1 FWS Projected On Hand 272
PLANNED ORDER
RELEASE
Factory in Denver, Colora WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS
Order Quantity: 400 SCHED RECEIPTS 800 0
Safety Stock = 0 Projected On Hand 0
PLANNED ORDER
RELEASE
Bonus Answer 2: The DCs and Factory all work on a 5-day per week schedule.
Montreal DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 80 80 80 120 90 80 80
Order Quantity: 200 SCHED RECEIPTS 0 200 0 200 0
TARGET MIN INV 96 104 138 106 96
Safety Stock: 1.2 FWS Projected On Hand 180 100 220 140 220 130
PLANNED ORDER
200 0 200 0
RELEASE
Calgary DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 200 200 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0 400 200 400 200
TARGET MIN INV 200 200 240 300 200
Safety Stock: 1 FWS Projected On Hand 272 72 272 272 432 332
PLANNED ORDER
400 200 400 200
RELEASE
Factory in Denver, Colora WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS 600 200 600 200
Order Quantity: 400 SCHED RECEIPTS 800 0 800 0
Safety Stock = 0 Projected On Hand 0 200 0 200 0
PLANNED ORDER
800 0
RELEASE
Bonus Question 3:
Complete the following DRP Plan. The DCs and Factory all work on a 5-day per week schedule.
Vancouver DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 100 100 100 200 80 80 80
Order Quantity: 100 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1.2 FWS Projected On Hand 180
PLANNED ORDER
RELEASE
Toronto DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 200 200 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0
TARGET MIN INV
Safety Stock: 1 FWS Projected On Hand 272
PLANNED ORDER
RELEASE
Factory in Atlanta, Georgia WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS
Order Quantity: 300 SCHED RECEIPTS 600 600
Safety Stock = 0 Projected On Hand 0
PLANNED ORDER
RELEASE
Bonus Answer 2: The DCs and Factory all work on a 5-day per week schedule.
Vancouver DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 100 100 100 200 80 80 80
Order Quantity: 100 SCHED RECEIPTS 0 200 200 100 0
TARGET MIN INV 120 140 216 96 96
Safety Stock: 1.2 FWS Projected On Hand 180 80 180 280 180 100
PLANNED ORDER
RELEASE 200 200 100 0
Toronto DC WEEK 1 2 3 4 5 6 7
Transit Time: 1 Week FORECAST 200 200 200 240 300 200 200
Order Quantity: 200 SCHED RECEIPTS 0 400 200 400 200
TARGET MIN INV 200 200 240 300 200
Safety Stock: 1 FWS Projected On Hand 272 72 272 272 432 332
PLANNED ORDER
RELEASE 400 200 400 200
Factory in Atlanta, Georgia WEEK 1 2 3 4 5
Leadtime: 2 weeks GROSS RQMTS 600 400 500 200
Order Quantity: 300 SCHED RECEIPTS 600 600 300 300
Safety Stock = 0 Projected On Hand 0 0 200 0 100
PLANNED ORDER
RELEASE 300 300
