Summary of Changes: Plamen

Changes round 2:

I have increased some of the safety stock for components Pack 1liter and PET , due to fluctuations in the supply we had so far. Orange`s safety stock has been decreased, due to change?? in supplier and increase of the delivery quantities.

Mango and vitamin`s suppliers have been changed, and we do not know their quality yet, thus the safety stocks are relatively high still.

Finished goods:

Most of the product`s production interval has been changed from 10 to 5. So we can reduce the finished goods` inventory and also increase higher service level, which can be offered to the customers. More often production can be more flexible and satisfy the customer.

Safety stock of Pack 1 liter and PET have been increased, because of the introduction of promotions in the sales department. We want to have higher levels of customer satisfaction.

Purchasing has changed the amount we order for Vitamin C and Mango thus the Lot sizes and the safety stock have been also reduced. Thus we hope to increase efficiency and reduce inbound stocks.

Together with Operations department we have decided to switch the frozen period from 3 to 2 weeks, thus more responsive to customer requirements and the possible heavy promotions our sales team is planning to have. This might lead to increase in costs, but we hope to see more income from our move.

Furthermore the production interval for the products we supply to our biggest customers - the first two supermarkets have changed from 5 to 2. Thus we hope to satisfy the promotions.

Also have decreased the lot size of pack 1 liter to 2 weeks in order to try to minimze inventory costs compared to the high promotional pressure...

Round 4

Changed production intervals to 5 10 5 5 10 5 in order to achieve minimum cost good amount of utilization on the botling line according to the Load production interval tool.

Also according to the recommendations Pack 1 liter has high level of stock, so i am also reducing the safety stock from 2 to 1.5 week. and the lot size from 2 to 1.5 week as well.

I want to reduce safety stock and lot size of PET, but due to higher promotional pressure i will leave safety stock and reduce the lot size to 2 weeks.

I think mango`s SS can further be decreased, but due to lower reliability of supplier this would be hard....

Due to the previous data that our supplier of orange is relatively stable i have decided to decrease the lot size to 1.5.

Products:

I am decreasing the required level of safety stock for Fressie Orange/C-power PET from 3.2 weeks to 2 weeks, because we have high obsolesce rate of this product.

Furthremore in order to reduce costs i am decreasing the overal safety stock for the other products as well.

Fressie Orange pet from 3.1 weeks to 2.0

All the products have been decreased to 2 weeks safety stock.