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In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what would be the quantities that would need amendment as far as Distribution Manager is concerned to service for week two and onwards? After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of forecast and Delhi did 150 % of week one forecast. Note: Kolkata will receive transit stocks in week 2.
Mumbai
Chennai
Lucknow
Delhi
Kolkata
OP Bal
120
350
270
250
Safety Stock
60
125
150
100
200
Min Ord Qty
80
300
Lead time Wk
1
2
3
Transit
Sales Forecast
Wk 1
50
Wk 2
35
75
Wk 3
55
Wk 4
65
135
Wk 5
Wk 6
165
Wk 7
90
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Stepping Stone Method: Continue the above example containing the initial basic feasible solution obtained by least cost rule. In this there six empty cell :91,1) )1
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importance of CAPACITY PLANNING
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