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Exercise a)
Following the format of the spreadsheet in Figure 2, develop a spreadsheet to forecast Fitter's
sales for July through December. Calculate the base projection using the previous year's values
(shown in Figure 1), and factor in the 3 percent estimated growth rate.
Assume that the special marketing promotion last year resulted in an increase in sales of 200
cases for July and that a special marketing promotion this year will result in an increase in sales
for July of 400 cases.
Growth 3.0 %
Promotion (cases)
Solution Exercise a)
Exercise b)
Using the Fitter sales forecast for July through December that you created in Exercise a),
develop a spreadsheet for sales and operations planning for those same months. Use the
format of the spreadsheet shown in Figure 4. The number of working days for each month is
shown in Figure 3.
Sales and operation planning December January February March April May June
1) Sales forecast 5906 5998 6061 6318 6476 7128
2) Production plan 5906 5998 6061 6318 6650 6950
3) Inventory 100 100 100 100 100 274 96
4) Working days 21 20 23 21 21 22
5) Capacity (shipping cases) 6999 6666 7666 6999 6999 7333
6) Utilization 84% 90% 79% 90% 95% 95%
7) NRG-A (cases) 70.0% 4134 4199 4243 4423 4655 4865
8) NRG-B (cases) 30.0% 1772 1799 1818 1895 1995 2085
2) Production plan
3) Inventory
4) Working days
6) Utilization
Solution Exercise b)
Exercise c)
Develop a weekly production plan for August, like the one for January shown in Figure 5. For
the weekly sales periods, the last week will include two days in September. The factory
calendar information is shown in Figure 6.
Demand management
Monthly demand NRG-A
NRG-B
MPS NRG-A
Demand management
Monthly demand NRG-A
NRG-B
MPS NRG-A
Solution Exercise c)
Exercise d)
Develop an MRP record, similar to the one in figure 7, for wheat germ for the five weeks of
August. Wheat germ must be ordered in bulk-container quantities, so the planned orders must
be multiples of 2,000 pounds. Use a lead time of one week and an initial on-hand inventory of
3,184 pounds, assume that an order of 8,000 pounds is scheduled for receipt during Week 1.
Are there any weeks when you, as a planner, would consider planning an order above or below
the minimum required? Why? (Assume that there are no problems with storage capacity or
shelf life)
(cases) NRG-B
MPS NRG-A
Gross requirements(lb)
Scheduled receipts
Planned receipts
On hand
Planned orders
Solution Exercise d)