Case Toffee Inc.: Demand Planning for Chocolate Bars
Please show me step by step-thank you if you can attach excel sheet would really appreciate it.
1. Determine what kind of sales demand is Toffee Inc. by looking at data (graph data in several ways). Data is provided in spreadsheet in D2L
2. Apply the 2 most appropriate forecasting methods and indicate which is best suited to the situation (show error measurements)
3. Creat e an inventory policy for the sales and distribution division (Economic order quantity, replenishment trigger (ROP) with the given lead time and service level of 95%)
4. What is the total annual inventory cost (based on number of orders per year and order cycle)?
5. What is the production quantity for Seven Star (assuming zero losses in production) and hence, what is the annual requirement for the cocoa in terms of quantity needed?
6. What is the best quantity bargain for the firm for cocoa? How are the purchase quantity levels decided and what is the total cost outlay for the same?
7. Extra Credit (+5) Calculate the same information for the other primary ingredients.
Hints on Toffee Co.
Once you have your forecast amount for Cases of Seven Star (F):
1. Convert from F cartons to bags (x 100 bags/carton)
2. Convert from Bags to bars (x 20 bars/bag)
3. Convert to grams (x 30 g/bar)
4. Convert to KG (divide total g by 1000)
You can then calculate kg of ingredients (Cocoa, Cocoa butter, Dark Chocolate, and Fruit/nuts) in a similar way.
- Attachment 1
- Attachment 2