Thoughts on Littlefield
Autor: Christian Kling • November 22, 2017 • Essay • 354 Words (2 Pages) • 490 Views
Re-order point (ROP): https://www.youtube.com/watch?v=V4qUrzRDPqo
[pic 1]
From the Instruction document we know:
Lead time is four (4) days
Working days: 268, after that the simulation ends, and we work 24/7
Demand is a bit trickier, following the calculations of Joseph linear approach, the total demand will be 2689 units.
Total demand | ROP |
2500 | 37 |
2600 | 39 |
2750 | 41 |
3000 | 45 |
3250 | 49 |
3500 | 52 |
4000 | 60 |
5000 | 75 |
Seeing the product, we might see a strong demand increase, seeing that there is more influence in winter time. This will be a very important number to watch. In any case, see the table below, using different demands.
I suggest to also take a safety stock into account. This can be calculated via (https://www.tradegecko.com/learning-center/reorder-point-formula-calculation) :
[pic 2]
Lead time is always 4 days, according to the script. If we take the data from the first 50 days, the result would be 17, using the linear forecast, we would end up with 36. The safety stock needs to be added to the ROP.
Add the moment we have a ROP of 24 set by the system. I think we should strongly increase here, so we don’t have to turn down customers. I suggest here to be a bit more optimistic due to the potential flue season, thus set the value to 60 – 65
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