Reference no: EM132343303
Rock Bottom Case Study -
The Rock Bottom Drum Company builds drums for professional and amateur musicians alike. Recently the company has expanded into a new line of native Canadian drums utilizing authentic materials and native crafts people to build this unique line of drums.
The products are quite expensive but have an authentic sound and craftsmanship. There are three drums under this new line, 10", 14" and the 20" model.
The company sells drums through music store through out Canada, however these crafted unique native drums will likely be sold through boutiques that cater to exotic merchandise.
A new coordinator of sales has been appointed to help manage the new line. The sales coordinator is in charge of:
- Developing a sales forecast for the new line of drums.
- Working with production to create a Sales and Operations plan for the forecast.
- Working with production on the Master Schedule.
- Monitor and report booked orders.
- Monitor actuals shipments (sales).
Recently, the company landed a major retail contract with the Canada Boutique, a large format retailer with stores in major malls through out Canada including a flagship store at the Eaton Center in Toironto. While supplying this new retailer group is exciting, they have also asked to create the Economic Order Quantity for each store.
Canada Boutique retails utilizing EDI tools and is part of an enterprise software program that issues orders once the a reorder point is reached. For some reason the order to delivery time is about 5 days. And management has set a reorder point at 5, which will trigger an order through the ERP system.
Planning values:
- 20" Drum $600 Retail WS $420
- 14" Drum $400 Retail WS $280
- 10" Drum $250 Retail WS $175
The objective of the case study is to develop various sales and operation plans, master scedules and to develop a periodic or continuous replenishment plan for their key retail operators. Also, on the final tab "Story" please answer the questions.
1. Forecast and Production Plans -
Use the seasonality curve to develop a monthly Sales Forecast.
Develop a Sales and Operations Plan for Chase and Level Planning.
Choose the lowest cost option.
Develop a Master Sales Plan for each type of Drum.
2. Develop a Master schedule for the three types of drums being produced.
3. Monthly visit to Boutique store Calgary -
What is the total cycle time for periodic review and order period?
What is the z statistic for the 99% service level?
What is the standard deviation for the sales forecast and what is the average monthly sales?
Determine the reorder point?
4. Monthly visit to Boutique store Winnipeg
What is the total cycle time for periodic review and order period?
What is the z statistic for the 99% service level?
What is the standard deviation for the sales forecast and what is the average monthly sales?
Determine the reorder point?
5. Please share your perspective of how this plan was put together and how it will impact the retail operations.
6. What was the biggest learning you faced in this case study?
Attachment:- Assignment - Rock Bottom Case Study.rar