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DA NANG UNIVERSITY OF ECONOMIC

SUNDERLAND UNIVERSITY PROGRAMME

My name: Nguyen Le Thuc Nhi ( S a)

SUD10

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Table of Contents

I. Introduction ................................................................................................................................. 3II. Memorandum ............................................................................................................................. 4

III. Forecasting Techniques: ........................................................................................................... 5

3.1. Additive method ................................................................................................................... 5

3.2 Multiplicative method ........................................................................................................... 7

3.3 Accuracy of forecasting methods .......................................................................................... 9

3.4 Recommendation. ................................................................................................................ 12

3.5 Management Information Systems ...................................................................................... 133.6 Inventory Control ................................................................................................................ 14

3.6.2 Discounted Economic Order Quantity ............................................................................. 17

3.7 Material Requirement Planning (MRP) .............................................................................. 20

3.8 Project Management Plan .................................................................................................... 21

3.9 Investment Appraisal ........................................................................................................... 22

IV. Conclusion .............................................................................................................................. 28

V. References: ............................................................................................................................... 29VI. Appendices: ............................................................................................................................ 30

Appendix1: ................................................................................................................................ 30

Appendix 2: ............................................................................................................................... 31

Appendix 3 ................................................................................................................................ 48

Appendix 4 ................................................................................................................................ 50

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I. Introduction

I am working as marketing manager under supervision of Mr. Tuan, Director of

marketing department.

My company is Da Nang Furniture Company Limited (DFC) is a young

SME firm which manufactures furniture for domestic and overseas markets. DFC markets its

products not only in Vietnam, but also in foreign markets such as EU, North America, Japan, and

Southeast Asia. With the high technologies, high quality finishing, safety standard and it is

becoming the best choice for customer, so the demand of DFC products is growing rapidly.

Besides that, the main materials are purchased from Vietnam and neighboring countries - Laos

and Cambodia. This is the reason why the company has to calculate carefully in order to achieve

its competitive advantage.

In this report, I will show about the forecasting method. It is the method the company can

use for predicting in next months. Besides that, I will review and evaluate inventory control

systems and prepare a spreadsheet to assist in finding optimized order size for discounted price

range provided by supplier. Then, I will do a Material Requirement Planning (MRP) for all

components using a spreadsheet. To construct a network diagram and determine the expected

completion time together with the critical path as construct a Gantt chart for Planning to

purchase a new product. Moreover, I use NPV (Net Present Value) and IRR (Internal Rate of

Return) methods to evaluate feasibility of proposed investment projects.

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II. Memorandum

To : Mr Tuan - Director, Marketing Department

From : Sua, Marketing Manager

Subject : Market Research ReportDate : 23th May, 2012

Dear Mr Tuan,

I am Sua, I am working as marketing manager. The report will include forecasting, Additive

and Multiplicative, inventory control (Economic Order Quantity), MRP, Project

management, Investment appraisal, MIS methods. After that, I analyzed the forecast error

in each method. It will help you have more detail and easy to calculate about our product.

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III. Forecasting Techniques:

This task identifies the relationship between sales and time which can be analyzed so as

to forecast future values for the variable with different methods .

3.1. Additive method

PeriodActual data(Y)

5 periodmovingtotal

MovingAverage(T) Y - T

1 Jan 582 Feb 57

3 Mar 56 304 60.8 -4.84 Apr 63 302 60.4 2.65 May 70 299 59.8 10.21 Jun 56 301 60.2 -4.22 Jul 54 305 61 -73 Aug 58 304 60.8 -2.84 Sep 67 307 61.4 5.65 Oct 69 313 62.6 6.41 Nov 59 317 63.4 -4.42 Dec 60 322 64.4 -4.4

3 Jan 62 328 65.6 -3.64 Feb 72 330 66 65 Mar 751 Apr 61

Adjustment 1st month 2nd month 3rd month 4th month 5th month-4.8 2.6 10.2

-4.2 -7 -2.8 5.6 6.4-4.4 -4.4 -3.6 6

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TotalAverageseasonalvariation -4.3 -5.7 -3.73 4.73 8.3 -0.7Adjustment 0.14 0.14 0.14 0.14 0.14 0.7

Adjustmentseasonalvariation -4.16 -5.56 -3.59 4.87 8.44 0

Average rise in trend line =

Averise intime line 0.47

50

55

60

65

70

75

80

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Actual Sales and forecast ed sales (movingaverage-Addtive method

According to the line graph, the sales tend to increase year-by-year. The number of

furniture sales increased into 2011 and 2012 with about over 55,000 units to nearly 61,900 units.In July, 2011, the number of units for sales is lowest with lower than 55,000 units while in

March, 2012, it is the highest for selling furniture of company with 75,000 units. It means, the

company had good plan for 8months. About forecasting next five months, it can be said that the

sales can be improved with interest in program in autumn. The highest rate can guess over

75,000 units while the lowest just 65,000 units. It is good advantage for sale furniture.

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3.2 Multiplicative method

Months sales (unit)

5monthsworkingtotal

5monthsmovingaverage

seasonvariantion(Y/T)

No actual (Y) sum of 5 Ys (trend= T)1 Jan 582 Feb 573 mar 56 304 60.8 0.924 Apr 63 302 60.4 1.045 May 70 299 59.8 1.176 Jun 56 301 60.2 0.937 Jul 54 305 61 0.898 Aug 58 304 60.8 0.959 Sep 67 307 61.4 1.09

10 Oct 69 313 62.6 1.1011 Nov 59 317 63.4 0.9312 Dec 60 322 64.4 0.9313 Jan 62 328 65.6 0.9514 Feb 72 330 66 1.0915 mar 7516 Apr 61

adjustustionment 1st month 2nd month 3rd month 4th month 5th month0.92 1.04 1.17

0.93 0.89 0.95 1.09 1.100.93 0.93 0.95 1.09

average sesonalvariation 0.93 0.91 0.94 1.08 1.14ajustionment 1.00 1.00 1.00 1.00 1.00adjustmentvariantion 0.93 0.91 0.94 1.08 1.14

total 4.991.00

5

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Average rise in trend line =

no.of changing 11.00average rise 0.47

50

55

60

65

70

75

80

J a n

F e b a r

A p r

a y J u n

J u l

A u g

S e p

O c t

N o v

D e c

J a n

F e b a r

A p r

a y J u n

J u l

A u g

S e p

Actual Sales and forecas sales(Moving average-Multiplicative

method)

The Multiplicative method is very similar to Additive method, except for calculating

seasonal percentage instead of calculating seasonal variation. So, it is the same units for selling.

It is just difference about 0.01. The products will sell in next five months which was forecasted

same Additive method.

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3.3 Accuracy of forecasting methods

The table shows the forecast in next five months (Additive method)

Month Trend (T)

AvergeSeasonalVariation

Forecast foractual sales

Period 3 Feb 66Mar 66.47Apr 66.95May 67.42 -5.56 61.86

Period 4 Jun 67.89 -3.59 64.30Jul 68.36 4.87 73.24Aug 68.84 8.44 77.28

period 5 Sep 69.31 -4.16 65.15

S (Y-T) -SForcasterror

-3.59 -1.214.87 -2.278.44 1.76

-4.16 -0.04-5.56 -1.44-3.59 0.794.87 0.738.44 -2.04

-4.16 -0.24-5.56 1.16-3.59 -0.014.87 1.13 -0.14

12

total -1.68

The table show forecast error:

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The table shows the forecast in next five months (multiplicative method)

month trend (T)

averageseasonalvariantion

forecastactual sales

Feb 66 1.08 71.09period 3 mar 66.47 1.14 75.69

Apr 66.95 0.93 62.41May 67.42 0.91 61.36

period 4 Jun 67.89 0.94 63.94Jul 68.36 1.08 73.64Aug 68.84 1.14 78.38

period 5 Sep 69.31 0.93 64.61

S (y/t)-S

0.94 -0.021.08 -0.031.14 0.030.93 0.000.91 -0.020.94 0.011.08 0.011.14 -0.040.93 0.000.91 0.020.94 0.001.08 0.011.140.93

total -0.0212

forecasterror -0.002

The table show forecast error: 002.0(-0.02)/12)/(

n

S T Y

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The additive method is a good method since that it forecast the sales which are almost

close to the trend. In other words, if the trend line goes up, the forecasted sales will also increase.

The additive it is better because it has smaller Forecasting error It means it will help find the

error clearer and easier to repair the error.

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3.4 Recommendation.

The additive method is a good method since that it forecast the sales which are almost

close to the trend. In other words, if the trend line goes up, the forecasted sales will also increase.

The additive it is better because it has smaller Forecasting error It means it will help find the

error clearer and easier to repair the error.

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3.5 Management Information Systems

Since DFCs sales and exports grow, there is an urgent need for effective cooperation and

information sharing among departments. It is increasingly important for DFC employees to

share company information such as production, delivery schedules, sales forecasts, financial

information, inventory, and labor requirement across the departments - production, marketing,

finance and export. Currently, all the departments share the information using paper-based

reports and memorandum. At DFC, data for each department are kept separately on their

respective personal computers (PCs). Sales forecasts from marketing departments are

forwarded to production department using memorandum. Raw material orders from

production department are forwarded to purchasing department using the same method. There is

a lack of utilizing appropriate Management Information Systems within the organization as well

as with external stakeholders.

There are seven types of information system including Management Information System

(MIS), Executive Support Systems (ESS), Management Support Systems (MSS), Decision

Support Systems (DSS), Knowledge Work Systems (KWS), Office Automation Systems (OAS)

and Transaction Processing Systems (TPS). The following figure has displayed properly about

the levels, types and functions of each level.

To solution, a business will have several Transaction Process Systems such as: calculate

and system these things that we need know and tax that we have to pay, each store should have

cash machine and cash register to make the sale easier. They need Office Automatic Systems,

Kinh Do can apply it because it coordinates diverse information workers. Especially, it will try

to improve the productivity of employee who need to process data and information. Moreover,

the company can use Word process such as Microsoft Word, Power point or Microsoft Excel XP,

with this system, their employees can improve quality work of every employees working in an

office or can accept work at home. Moreover, the company should trains employee to improve

about their skill, should have email of each manager to update information for employees. Each

office should have notice board and reward board to make employees can follow mission and

have more motivate to do their work. Each store, the company should add more staff to

introduce about product for customers with enthusiasm, friendly and funny.

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3.6 Inventory Control

3.6.1 Economic Order Quantity (EOQ)

The ordering cost: cost associated with placing an order. For example, transport cost, productionrun cost, post purchased cost, etc

The carrying cost: cost of storages, material handling, technology, internet, etc

Total cost= total ordering cost + total carrying cost=

EOQcarryingcost (1unit)

Cc=1.8

orderingcost (1time)

Co=50

demand(annual)

D=2000 units

no. of workingdays = 311 days

price 5

total inv cost = total ordering cost + total carrying cost + Product cost

TC (Qpt) Co* D/Q + Cc* Q/2 P*D300.00000 + 300 + 10000

10600.00000 /order

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order cycletime no. of day/ no. of order

51.83333333 days52 days

Q opt = 334 units/ order

TC qopt = TC EOQ = + + PD =

TC 300 = + + PD =

= 10603.33

With 334units per order, the cost is lower so the company should chose order 334units.

Order cycle time: after 52days, the company can order the units

EOQ data table quanti ty and total cost

quantity

orderingcostCo*D/Q carrying cost Cc*Q/ TC (inv) note

200 500 180 10680201 497.512438 180.9 10678.41244202 495.049505 181.8 10676.8495203 492.610837 182.7 10675.31084204 490.196078 183.6 10673.79608205 487.804878 184.5 10672.30488

298 335.57047 268.2 10603.77047299 334.448161 269.1 10603.54816300 333.333333 270 10603.33333301 332.225914 270.9 10603.12591302 331.125828 271.8 10602.92583303 330.033003 272.7 10602.733

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331 302.114804 297.9 10600.0148332 301.204819 298.8 10600.00482333 300.3003 299.7 10600.0003 minimum inv.cost334 299.401198 300.6 10600.0012335 298.507463 301.5 10600.00746

336 297.619048 302.4 10600.01905

0

2000

4000

6000

8000

10000

12000

1 1 2

2 3

3 4

4 5

5 6

6 7

7 8

8 9

1 0 0

1 1 1

1 2 2

1 3 3

1 4 4

1 5 5

1 6 6

1 7 7

1 8 8

1 9 9

Economic order quantity

ordering cost Co*D/Q

carrying cost Cc*Q/2

TC (inv)

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3.6.2 Discounted Economic Order Quantity

Quantity Discount Schedule

Order band Unit Price ()

1 200 5201 400 4

401 any 3

EOQ

carryingcost(1unit)

Cc=

1.8 orderingcost(1time)

Co=

50 demand(annual)

D=2000 units

no. of working

days = 311 days

quanti ty price total cost note42 5 12418.7523843 5 12364.2814

44 5 12312.3272745 5 12262.7222246 5 12215.3130447 5 12169.9595748 5 12126.5333349 5 12084.9163350 5 12045

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396 4 8608.925253397 4 8609.189169398 4 8609.456281

399 4 8609.726566400 4 8610401 3 6610.276559 minimum Inv.Cost402 3 6610.556219

TC EOQ = TC Qopt = 10600

TC 200 =

10680

TC 201 =

8678.41

TC 400 =

8610

TC 401 =

6610.276

The total cost of price range 401 is lowest.

If the company do not discount, the lowest cost is 333units. If the company get discount, the

units company should order for lowest cost is 401 units. (in appendix 2)

0

2000

4000

6000

8000

10000

12000

14000

1 1 9

3 7

5 5

7 3

9 1

1 0 9

1 2 7

1 4 5

1 6 3

1 8 1

1 9 9

2 1 7

2 3 5

2 5 3

2 7 1

2 8 9

3 0 7

3 2 5

3 4 3

3 6 1

Discounted economic order quantitymodel

total cost

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3.7 Material Requirement Planning (MRP)MRP is a computerized inventory control and production planning system to minimize theinventory and maintain delivery schedules.

component

leed

time(week)

On-handinventory lot size

schedulereceipt

Folding SunLounger (Enditem) 2 100 L4LBed side Ass embly 3 50 L4LBed Side 1 30 L4L 100 in week 1

Slat (2 cm) 1 - L4L

Roller 1 60 L4L 200 in week 1

Hinge 3 200 MULTI (100)

Wood Screw 2 1000 MULTI (400)

Rest side Assembly 2 40 L4L

Rest Side 1 50 L4L

Slat (1cm) 1 - L4L

Material requirement planning PeriodItem 1 2 3 4 5 6 7 8Folding sun lounger 0 0 0 0 0 400 0 0Bed side assembly 0 0 350 0 0 0 0 0Bed side 0 570 0 0 0 0 0 0Slat ( 2 cm) 0 7000 0 0 0 0 0 0Roller 0 90 0 0 0 0 0 0Hinge 0 0 0 0 600 0 0 0Wood screw 0 0 0 0 0 3200 0 0Rest side assembly 0 0 0 360 0 0 0 0rest side 0 0 670 0 0 0 0 0Slat (1 cm) 0 0 2520 0 0 0 0 0

The table shows that in week 6, the company needs 400 folding sun loungers. Therefore, the

company has to order in week 2 is include 570 bed site, 7000 slat (2cm), 90 roller. If in week 2,

the company can meet this material, they can next to week 3. In week 3, they need site assembly350 beds 670 rest sides and 2520 slat (1cm). In week 4, they just need side assembly 360 rests. In

week 5, they also need 600 hinges. After that, in week 6, to complete 400 folding sun loungers,

the company has to have 3200 wood screw. If the company can meet all of this planning for

material, they can provide 400 folding sun loungers which good standard to make the customer

satisfaction.

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3.8 Project Management Plan(See appendix4)

Paths Duration (week)

A- B- D- E 7 (2+3+1+1)

A- B- D- F- I- K- L 15(2+3+1+2+2+3+2)

A- B- D- F- I J- DUMMY 11 (2+3+1+2+1)

A- B- D- G- H- I- K- L 16( 2 +3+1+2+1+2+3+2)

A- B- D- G- H- I- J- DUMMY 12(2+3+1+2+1+2+1)

A- C- D- E- DUMMY 5(2+1+1+1)

A- C- D- F- I- K- L 13(2+1+1+2+2+2)

A- C-D F- I- J- DUMMY 9(2+1+1+2+2+1)

A- C- D- G- H- I- K- L 14(2+1+1+2+1+2+2+2)

A- C- D- G- H- I- J- DUMMY 10(2+1+1+2+1+2++1)

The critical path is the longest path, A- B- D- G- H- I- K- L with the duration of

16weeks. A- C- D- E- DUMMY - This is the minimum time required to complete the project

(5weeks)

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3.9 Investment AppraisalAccount rate of return (ARR) the profit arising from a project as a percentage of the initial

capital cost.

Payback period: the method is forecast about the time that company can get back the money.

With 3 projects, I choose two methods follow.

NPV( net present value) it calculates the present values of all items of income and expenditure

related to an investment at a given rate of return.

IRR(internal rate of return) a method which determines the rate of interest(the internal rate of

return) at which the NPV is 0. IRR method will indicate that a project/ investment is feasible if

the IRR exceeds the minimum acceptable rate of return.

Cost of capitala 10%

W-1 W-2 W-3Initial cost $80,000 $120,000 $90,000Expected Cash Flow

End of Year 1 15,000 30,000 15,000Year 2 20,000 30,000 30,000Year 3 23,000 35,000 30,000Year 4 35,000 40,000 30,000Year 5 40,000 50,000 30,000

W-1

Year Cash Flow ($) Discount Factor (10%) Present Value ($)0 $80,000 1 $80,0001 15,000 0.909 136362 20,000 0.826 165293 23,000 0.751 17280

4 35,000 0.683 239055 40,000 0.621 24837

NPV $16,188

Based on the table, NPV= 16,188 it is positive, it means the investment is acceptable

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YEARcash flow$

cumulative castflow

0 ($80,000) ($80,000)1 15,000 ($65,000)

2 20,000 ($45,000)3 23,000 ($22,000)4 35,000 $13,0005 40,000 $53,000

133,000

Estimaedinterestrate IRR 16% YEAR cash flow $

discoountedfactor (44%) PV

0 ($80,000) 1 ($80,000)r1 44% 1 15,000 0.69 10404.62

2 20,000 0.48 9622.773 23,000 0.33 7675.974 35,000 0.23 8102.315 40,000 0.16 6422.97

NPV -37771.36

YEARcash flow$

0 ($80,000)

1 15,0002 20,0003 23,0004 35,0005 40,000

IRR 16%

r 1 = )Pr

(32

investment ofit

= ]0000,80

0000,80)000,40000,35000,23000,20000,15([32 x

= 44%

IRR = r 2 + [NPV2/(NPV2-NPV1)*|(r 2 r 1)|]

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= 10% + [ )]%1044(*)771,37(188,16

188,16

= 16, 41%

With IRR = 16,41%, it is the highest. It means it better for company, so the company shouldchoose this method for invest machine

W-2

Year Cash Flow ($) Discount Factor (10%) Present Value ($)0 $120,000 1 $120,000

1 30,000 0.909 272732 30,000 0.826 247933 35,000 0.751 262964 40,000 0.683 273215 50,000 0.621 31046

NPV $16,729

Based on the table, NPV= 16,729 it is positive and it is higher, it means the investment is

acceptable and better for company. So, with the highest NPV, the company can get return 10%.

YEARcash flow$

cumulative castflow

0 ($120,000) ($120,000)1 30,000 ($90,000)2 30,000 ($60,000)3 35,000 ($25,000)4 40,000 $15,000

5 50,000 $65,000185,000

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0 ($120,000) 1 ($120,000)r1 36% 1 30,000 0.73 22040.82

2 30,000 0.54 16193.253 35,000 0.40 13879.934 40,000 0.29 11654.295 50,000 0.21 10702.92

NPV ($45,528.80)

YEARcash flow$

0 ($120,000)1 30,0002 30,0003 35,0004 40,0005 50,000

IRR 15%

r 1 = )Pr

(32

investment ofit

= ]0000,1200000,120)000,50000,40000,35000,30000,30(

[32

x

= 36%


= 10% + [ )]%1036(*)45529(729,16

729,16

= 14.8%

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W-3

Year Cash Flow ($) Discount Factor (10%) Present Value ($)0 $90,000 1 $90,000

1 15,000 0.909 $13,6362 30,000 0.826 $24,7933 30,000 0.751 $22,5394 30,000 0.683 $20,4905 30,000 0.621 $18,628

NPV $10,087

Based on the table, NPV= 10,087 it is positive, it means the investment is acceptable

YEARcash flow$

cumulative castflow

0 ($90,000) ($90,000)1 15,000 ($75,000)2 30,000 ($45,000)3 30,000 ($15,000)4 30,000 $15,0005 30,000 $45,000

135,000



0 ($90,000) 1 ($90,000)r1 33% 1 15,000 0.75 11250

2 30,000 0.56 168753 30,000 0.42 12656.254 30,000 0.32 9492.18755 30,000 0.24 7119.140625

NPV ($32,607)

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YEARcash flow$

0 ($90,000)1 15,000

2 30,0003 30,0004 30,0005 30,000

IRR 14%

r 1 = )Pr

(32

investment ofit

= ]

0000,90

0000,90)000,30000,30000,30000,30000,15([

3

2 x

= 33%


= 10% + [ )]%1033(*)32607(087,10

087,10

= 14%

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IV. Conclusion

To conclusion, decisions are very important because risky in business depend on it, it

affects the organization considerably. So, the company should have these right decisions at the

right time, should be careful with each decisions.

In this report, there are some main things such as: 3 methods in Forecasting, Presentation,

Management Information System, Economic Order Quantity and Discount, Net work Diagram,

Material Requirement Planning, NPV and IRR methods.

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V. References:

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VI. Appendices:

Appendix1:

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Appendix 2:

Months sales (unit)

5monthsworkingtotal

5monthsmovingaverage

seasonvariantion(Y/T) period

No actual (Y) sum of 5 Ys (trend= T) 5

1 Jan 582 Feb 573 mar 56 304 60.8 0.924 Apr 63 302 60.4 1.045 May 70 299 59.8 1.176 Jun 56 301 60.2 0.937 Jul 54 305 61 0.898 Aug 58 304 60.8 0.959 Sep 67 307 61.4 1.09

10 Oct 69 313 62.6 1.1011 Nov 59 317 63.4 0.9312 Dec 60 322 64.4 0.9313 Jan 62 328 65.6 0.9514 Feb 72 330 66 1.0915 mar 7516 Apr 6117 May 61.3618 Jun 63.94

19 Jul 73.6420 Aug 78.38

21 Sep 64.61

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S (y/t)-S

0.94 -0.021.08 -0.031.14 0.030.93 0.000.91 -0.020.94 0.011.08 0.011.14 -0.040.93 0.000.91 0.020.94 0.001.08 0.011.140.93

total -0.0212

forecasterror -0.002

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PeriodActual data(Y)

5 periodmovingtotal

MovingAverage(T) Y - T

1 Jan 582 Feb 57

3 Mar 56 304 60.8 -4.84 Apr 63 302 60.4 2.65 May 70 299 59.8 10.21 Jun 56 301 60.2 -4.22 Jul 54 305 61 -73 Aug 58 304 60.8 -2.84 Sep 67 307 61.4 5.65 Oct 69 313 62.6 6.41 Nov 59 317 63.4 -4.42 Dec 60 322 64.4 -4.43 Jan 62 328 65.6 -3.64 Feb 72 330 66 65 Mar 751 Apr 612 May 61.863 Jun 64.304 Jul 73.245 Aug 77.281 Sep 65.15

S (Y-T) -SForcasterror

-3.59 -1.214.87 -2.278.44 1.76

-4.16 -0.04-5.56 -1.44-3.59 0.794.87 0.73

8.44 -2.04-4.16 -0.24-5.56 1.16-3.59 -0.014.87 1.13 -0.14

-1.68 12

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EOQ data table quanti ty and total cost

quantity

orderingcostCo*D/Q carrying cost Cc*Q/ TC (inv) note

200 500 180 10680

201 497.512438 180.9 10678.41244202 495.049505 181.8 10676.8495203 492.610837 182.7 10675.31084204 490.196078 183.6 10673.79608205 487.804878 184.5 10672.30488206 485.436893 185.4 10670.83689207 483.091787 186.3 10669.39179208 480.769231 187.2 10667.96923209 478.4689 188.1 10666.5689210 476.190476 189 10665.19048211 473.933649 189.9 10663.83365212 471.698113 190.8 10662.49811213 469.483568 191.7 10661.18357214 467.28972 192.6 10659.88972215 465.116279 193.5 10658.61628216 462.962963 194.4 10657.36296217 460.829493 195.3 10656.12949218 458.715596 196.2 10654.9156219 456.621005 197.1 10653.721220 454.545455 198 10652.54545221 452.488688 198.9 10651.38869

222 450.45045 199.8 10650.25045223 448.430493 200.7 10649.13049224 446.428571 201.6 10648.02857225 444.444444 202.5 10646.94444226 442.477876 203.4 10645.87788227 440.528634 204.3 10644.82863228 438.596491 205.2 10643.79649229 436.681223 206.1 10642.78122230 434.782609 207 10641.78261231 432.900433 207.9 10640.80043232 431.034483 208.8 10639.83448

233 429.184549 209.7 10638.88455234 427.350427 210.6 10637.95043235 425.531915 211.5 10637.03191236 423.728814 212.4 10636.12881237 421.940928 213.3 10635.24093238 420.168067 214.2 10634.36807239 418.410042 215.1 10633.51004240 416.666667 216 10632.66667241 414.937759 216.9 10631.83776242 413.22314 217.8 10631.02314243 411.522634 218.7 10630.22263244 409.836066 219.6 10629.43607245 408.163265 220.5 10628.66327

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35

240 416.666667 216 10632.66667241 414.937759 216.9 10631.83776242 413.22314 217.8 10631.02314243 411.522634 218.7 10630.22263244 409.836066 219.6 10629.43607

245 408.163265 220.5 10628.66327246 406.504065 221.4 10627.90407247 404.8583 222.3 10627.1583248 403.225806 223.2 10626.42581249 401.606426 224.1 10625.70643250 400 225 10625251 398.406375 225.9 10624.30637252 396.825397 226.8 10623.6254253 395.256917 227.7 10622.95692254 393.700787 228.6 10622.30079255 392.156863 229.5 10621.65686256 390.625 230.4 10621.025257 389.105058 231.3 10620.40506258 387.596899 232.2 10619.7969259 386.100386 233.1 10619.20039260 384.615385 234 10618.61538261 383.141762 234.9 10618.04176262 381.679389 235.8 10617.47939263 380.228137 236.7 10616.92814264 378.787879 237.6 10616.38788265 377.358491 238.5 10615.85849

266 375.93985 239.4 10615.33985267 374.531835 240.3 10614.83184268 373.134328 241.2 10614.33433269 371.747212 242.1 10613.84721270 370.37037 243 10613.37037271 369.00369 243.9 10612.90369272 367.647059 244.8 10612.44706273 366.300366 245.7 10612.00037274 364.963504 246.6 10611.5635275 363.636364 247.5 10611.13636276 362.318841 248.4 10610.71884

277 361.01083 249.3 10610.31083278 359.71223 250.2 10609.91223279 358.422939 251.1 10609.52294280 357.142857 252 10609.14286281 355.871886 252.9 10608.77189282 354.609929 253.8 10608.40993283 353.35689 254.7 10608.05689284 352.112676 255.6 10607.71268285 350.877193 256.5 10607.37719286 349.65035 257.4 10607.05035287 348.432056 258.3 10606.73206288 347.222222 259.2 10606.42222289 346.020761 260.1 10606.12076

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36

285 350.877193 256.5 10607.37719286 349.65035 257.4 10607.05035287 348.432056 258.3 10606.73206288 347.222222 259.2 10606.42222289 346.020761 260.1 10606.12076

290 344.827586 261 10605.82759291 343.642612 261.9 10605.54261292 342.465753 262.8 10605.26575293 341.296928 263.7 10604.99693294 340.136054 264.6 10604.73605295 338.983051 265.5 10604.48305296 337.837838 266.4 10604.23784297 336.700337 267.3 10604.00034298 335.57047 268.2 10603.77047299 334.448161 269.1 10603.54816300 333.333333 270 10603.33333301 332.225914 270.9 10603.12591302 331.125828 271.8 10602.92583303 330.033003 272.7 10602.733304 328.947368 273.6 10602.54737

305 327.868852 274.5 10602.36885306 326.797386 275.4 10602.19739307 325.732899 276.3 10602.0329308 324.675325 277.2 10601.87532309 323.624595 278.1 10601.7246

310 322.580645 279 10601.58065311 321.543408 279.9 10601.44341312 320.512821 280.8 10601.31282

313 319.488818 281.7 10601.18882314 318.471338 282.6 10601.07134315 317.460317 283.5 10600.96032316 316.455696 284.4 10600.8557317 315.457413 285.3 10600.75741318 314.465409 286.2 10600.66541319 313.479624 287.1 10600.57962

320 312.5 288 10600.5321 311.52648 288.9 10600.42648322 310.559006 289.8 10600.35901

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323 309.597523 290.7 10600.29752324 308.641975 291.6 10600.24198325 307.692308 292.5 10600.19231326 306.748466 293.4 10600.14847327 305.810398 294.3 10600.1104

328 304.878049 295.2 10600.07805329 303.951368 296.1 10600.05137330 303.030303 297 10600.0303331 302.114804 297.9 10600.0148332 301.204819 298.8 10600.00482333 300.3003 299.7 10600.0003 minimum inv.cost334 299.401198 300.6 10600.0012335 298.507463 301.5 10600.00746336 297.619048 302.4 10600.01905337 296.735905 303.3 10600.03591338 295.857988 304.2 10600.05799339 294.985251 305.1 10600.08525340 294.117647 306 10600.11765341 293.255132 306.9 10600.15513342 292.397661 307.8 10600.19766343 291.54519 308.7 10600.24519344 290.697674 309.6 10600.29767345 289.855072 310.5 10600.35507

346 289.017341 311.4 10600.41734347 288.184438 312.3 10600.48444348 287.356322 313.2 10600.55632349 286.532951 314.1 10600.63295350 285.714286 315 10600.71429351 284.900285 315.9 10600.80028352 284.090909 316.8 10600.89091353 283.286119 317.7 10600.98612354 282.485876 318.6 10601.08588

355 281.690141 319.5 10601.19014356 280.898876 320.4 10601.29888357 280.112045 321.3 10601.41204

358 279.329609 322.2 10601.52961359 278.551532 323.1 10601.65153360 277.777778 324 10601.77778361 277.00831 324.9 10601.90831

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362 276.243094 325.8 10602.04309363 275.482094 326.7 10602.18209364 274.725275 327.6 10602.32527365 273.972603 328.5 10602.4726366 273.224044 329.4 10602.62404

367 272.479564 330.3 10602.77956368 271.73913 331.2 10602.93913369 271.00271 332.1 10603.10271370 270.27027 333 10603.27027371 269.541779 333.9 10603.44178372 268.817204 334.8 10603.6172373 268.096515 335.7 10603.79651374 267.379679 336.6 10603.97968375 266.666667 337.5 10604.16667376 265.957447 338.4 10604.35745377 265.251989 339.3 10604.55199378 264.550265 340.2 10604.75026379 263.852243 341.1 10604.95224380 263.157895 342 10605.15789381 262.467192 342.9 10605.36719382 261.780105 343.8 10605.5801383 261.096606 344.7 10605.79661384 260.416667 345.6 10606.01667385 259.74026 346.5 10606.24026386 259.067358 347.4 10606.46736387 258.397933 348.3 10606.69793

388 257.731959 349.2 10606.93196389 257.069409 350.1 10607.16941390 256.410256 351 10607.41026391 255.754476 351.9 10607.65448392 255.102041 352.8 10607.90204393 254.452926 353.7 10608.15293394 253.807107 354.6 10608.40711395 253.164557 355.5 10608.66456396 252.525253 356.4 10608.92525397 251.889169 357.3 10609.18917398 251.256281 358.2 10609.45628

399 250.626566 359.1 10609.72657400 250 360 10610401 249.376559 360.9 10610.27656402 248.756219 361.8 10610.55622

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39

Discount table

quanti ty price total cost note42 5 12418.7523843 5 12364.2814

44 5 12312.3272745 5 12262.7222246 5 12215.3130447 5 12169.9595748 5 12126.5333349 5 12084.9163350 5 1204551 5 12006.6843152 5 11969.8769253 5 11934.4924554 5 11900.45185

55 5 11867.6818256 5 11836.1142957 5 11805.6859658 5 11776.3379359 5 11748.0152560 5 11720.6666761 5 11694.2442662 5 11668.7032363 5 11644.0015964 5 11620.165 5 11596.9615466 5 11574.5515267 5 11552.8373168 5 11531.7882469 5 11511.3753670 5 11491.5714371 5 11472.350772 5 11453.6888973 5 11435.5630174 5 11417.9513575 5 11400.83333

76 5 11384.1894777 5 11368.001378 5 11352.2512879 5 11336.9227880 5 1132281 5 11307.4679

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40

82 5 11293.312283 5 11279.5192884 5 11266.0761985 5 11252.9705986 5 11240.1907

87 5 11227.7252988 5 11215.5636489 5 11203.6955190 5 11192.1111191 5 11180.801192 5 11169.7565293 5 11158.9688294 5 11148.4297995 5 11138.1315896 5 11128.0666797 5 11118.2278498 5 11108.6081699 5 11099.20101

100 5 11090101 5 11080.99901102 5 11072.19216103 5 11063.57379104 5 11055.13846105 5 11046.88095106 5 11038.79623107 5 11030.87944

108 5 11023.12593109 5 11015.53119110 5 11008.09091111 5 11000.8009112 5 10993.65714113 5 10986.65575114 5 10979.79298115 5 10973.06522116 5 10966.46897117 5 10960.00085118 5 10953.65763

119 5 10947.43613120 5 10941.33333121 5 10935.34628122 5 10929.47213123 5 10923.70813124 5 10918.05161125 5 10912.5126 5 10907.05079127 5 10901.70157128 5 10896.45129 5 10891.2938130 5 10886.23077

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41

127 5 10901.70157128 5 10896.45129 5 10891.2938130 5 10886.23077131 5 10881.25878

132 5 10876.37576133 5 10871.5797134 5 10866.86866135 5 10862.24074136 5 10857.69412137 5 10853.22701138 5 10848.83768139 5 10844.52446140 5 10840.28571141 5 10836.11986142 5 10832.02535143 5 10828.0007144 5 10824.04444145 5 10820.15517146 5 10816.33151147 5 10812.57211148 5 10808.87568149 5 10805.24094150 5 10801.66667151 5 10798.15166152 5 10794.69474

153 5 10791.29477154 5 10787.95065155 5 10784.66129156 5 10781.42564157 5 10778.24268158 5 10775.11139159 5 10772.03082160 5 10769161 5 10766.01801162 5 10763.08395163 5 10760.19693

164 5 10757.3561165 5 10754.56061166 5 10751.80964167 5 10749.1024168 5 10746.4381169 5 10743.81598170 5 10741.23529171 5 10738.69532172 5 10736.19535173 5 10733.73468174 5 10731.31264

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42

172 5 10736.19535173 5 10733.73468174 5 10731.31264175 5 10728.92857176 5 10726.58182

177 5 10724.27175178 5 10721.99775179 5 10719.75922180 5 10717.55556181 5 10715.38619182 5 10713.25055183 5 10711.14809184 5 10709.07826185 5 10707.04054186 5 10705.03441187 5 10703.05936188 5 10701.11489189 5 10699.20053190 5 10697.31579191 5 10695.46021192 5 10693.63333193 5 10691.83472194 5 10690.06392195 5 10688.32051196 5 10686.60408197 5 10684.91421

198 5 10683.25051199 5 10681.61256200 5 10680201 4 8678.412438202 4 8676.849505203 4 8675.310837204 4 8673.796078205 4 8672.304878206 4 8670.836893207 4 8669.391787208 4 8667.969231

209 4 8666.5689210 4 8665.190476211 4 8663.833649212 4 8662.498113213 4 8661.183568214 4 8659.88972215 4 8658.616279216 4 8657.362963217 4 8656.129493218 4 8654.915596219 4 8653.721005220 4 8652.545455221 4 8651.388688

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43

217 4 8656.129493218 4 8654.915596219 4 8653.721005220 4 8652.545455221 4 8651.388688

222 4 8650.25045223 4 8649.130493224 4 8648.028571225 4 8646.944444226 4 8645.877876227 4 8644.828634228 4 8643.796491229 4 8642.781223230 4 8641.782609231 4 8640.800433232 4 8639.834483233 4 8638.884549234 4 8637.950427235 4 8637.031915236 4 8636.128814237 4 8635.240928238 4 8634.368067239 4 8633.510042240 4 8632.666667241 4 8631.837759242 4 8631.02314

243 4 8630.222634

244 4 8629.436066245 4 8628.663265246 4 8627.904065247 4 8627.1583248 4 8626.425806249 4 8625.706426250 4 8625251 4 8624.306375252 4 8623.625397

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44

253 4 8622.956917254 4 8622.300787255 4 8621.656863256 4 8621.025257 4 8620.405058

258 4 8619.796899259 4 8619.200386260 4 8618.615385261 4 8618.041762262 4 8617.479389263 4 8616.928137264 4 8616.387879265 4 8615.858491266 4 8615.33985267 4 8614.831835268 4 8614.334328269 4 8613.847212270 4 8613.37037271 4 8612.90369272 4 8612.447059273 4 8612.000366274 4 8611.563504275 4 8611.136364276 4 8610.718841277 4 8610.31083278 4 8609.91223

279 4 8609.522939280 4 8609.142857281 4 8608.771886282 4 8608.409929283 4 8608.05689284 4 8607.712676285 4 8607.377193

286 4 8607.05035287 4 8606.732056288 4 8606.422222

289 4 8606.120761290 4 8605.827586291 4 8605.542612292 4 8605.265753293 4 8604.996928

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45

294 4 8604.736054295 4 8604.483051296 4 8604.237838297 4 8604.000337298 4 8603.77047

299 4 8603.548161300 4 8603.333333301 4 8603.125914302 4 8602.925828303 4 8602.733003304 4 8602.547368305 4 8602.368852306 4 8602.197386307 4 8602.032899308 4 8601.875325309 4 8601.724595310 4 8601.580645311 4 8601.443408312 4 8601.312821313 4 8601.188818314 4 8601.071338315 4 8600.960317316 4 8600.855696317 4 8600.757413318 4 8600.665409319 4 8600.579624

320 4 8600.5321 4 8600.42648322 4 8600.359006323 4 8600.297523324 4 8600.241975

325 4 8600.192308326 4 8600.148466327 4 8600.110398328 4 8600.078049329 4 8600.051368

330 4 8600.030303331 4 8600.014804332 4 8600.004819333 4 8600.0003334 4 8600.001198335 4 8600.007463

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46

336 4 8600.019048337 4 8600.035905338 4 8600.057988339 4 8600.085251340 4 8600.117647

341 4 8600.155132342 4 8600.197661343 4 8600.24519344 4 8600.297674345 4 8600.355072346 4 8600.417341347 4 8600.484438348 4 8600.556322349 4 8600.632951350 4 8600.714286351 4 8600.800285352 4 8600.890909353 4 8600.986119354 4 8601.085876355 4 8601.190141356 4 8601.298876357 4 8601.412045358 4 8601.529609359 4 8601.651532360 4 8601.777778361 4 8601.90831

362 4 8602.043094363 4 8602.182094364 4 8602.325275365 4 8602.472603366 4 8602.624044367 4 8602.779564368 4 8602.93913369 4 8603.10271370 4 8603.27027371 4 8603.441779372 4 8603.617204

373 4 8603.796515374 4 8603.979679375 4 8604.166667376 4 8604.357447377 4 8604.551989378 4 8604.750265379 4 8604.952243380 4 8605.157895381 4 8605.367192382 4 8605.580105383 4 8605.796606384 4 8606.016667385 4 8606.24026

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47

381 4 8605.367192382 4 8605.580105383 4 8605.796606

384 4 8606.016667385 4 8606.24026386 4 8606.467358387 4 8606.697933388 4 8606.931959389 4 8607.169409390 4 8607.410256391 4 8607.654476392 4 8607.902041393 4 8608.152926394 4 8608.407107

395 4 8608.664557396 4 8608.925253397 4 8609.189169398 4 8609.456281399 4 8609.726566400 4 8610401 3 6610.276559 minimum Inv.Cost402 3 6610.556219

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Appendix 3Item Bed side Assem LLC 1 PeriodLot size L4L LT 3 0 1 2 3 4 5 6 7 Gross requirements 0 0 0 0 0 0 400 0 0Schelduled Receipts 0 0 0 0 0 0 0 0 0

Projectecd on Hand 50 50 50 50 50 50 50 0 0 0Net Requirements 0 0 0 0 0 0 350 0 0Planned order Receipts 0 0 0 0 0 0 350 0 0Planned order Releases 0 0 0 350 0 0 0 0 0

Item Bed Side LLC 2 PeriodLot size L4L LT 1 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 700 0 0 0 0 0Schelduled Receipts 0 100 0 0 0 0 0 0 0Projectecd on Hand 30 30 130 130 0 0 0 0 0 0Net Requirements 0 0 0 570 0 0 0 0 0Planned order Receipts 0 0 0 570 0 0 0 0 0Planned order Releases 0 0 570 0 0 0 0 0 0

Item Slat (2 cm) LLC 2 PeriodLot size L4L LT 1 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 7000 0 0 0 0 0Schelduled Receipts 0 0 0 0 0 0 0 0 0Projectecd on Hand 0 0 0 0 0 0 0 0 0 0Net Requirements 0 0 0 7000 0 0 0 0 0Planned order Receipts 0 0 0 7000 0 0 0 0 0Planned order Releases 0 0 7000 0 0 0 0 0 0

Item Roller LLC 2 PeriodLot size L4L LT 1 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 350 0 0 0 0 0Schelduled Receipts 0 200 0 0 0 0 0 0 0Projectecd on Hand 60 60 260 260 0 0 0 0 0 0Net Requirements 0 0 0 90 0 0 0 0 0Planned order Receipts 0 0 0 90 0 0 0 0 0

Planned order Releases 0 0 90 0 0 0 0 0 0

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item LLC: 1Lot Size Mult 400 LT 2 0 1 2 3 4 5 6 7

0 0 0 0 0 0 4000 0 0 0 0 0 0 0 0 0

1000 1000 1000 1000 1000 1000 1000 -3000 -3000 200

0 0 0 0 0 0 3000 3000 300 0 0 0 0 0 0 0 30 0 0 0 0 0 3200 0

Period

Gross RequirementsScheduled ReceiptsProjected on hand

Net RequirementsPlanned order receiptsPlanned order releases

Wood Screw

Item Rest sid LLC 1 PeriodLot size L4L LT 2 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 0 0 0 400 0 0Schelduled Receipts 0 0 0 0 0 0 0 0 0Projectecd on Hand 40 40 40 40 40 40 40 0 0 0Net Requirements 0 0 0 0 0 0 360 0 0

Planned order Receipts 0 0 0 0 0 0 360 0 0Planned order Releases 0 0 0 0 360 0 0 0 0

Item Rest Sid LLC 2 PeriodLot size L4L LT 1 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 0 720 0 0 0 0Schelduled Receipts 0 0 0 0 0 0 0 0 0Projectecd on Hand 50 50 50 50 50 0 0 0 0 0Net Requirements 0 0 0 0 670 0 0 0 0Planned order Receipts 0 0 0 0 670 0 0 0 0Planned order Releases 0 0 0 670 0 0 0 0 0

Item Slat (1c LLC 2 PeriodLot size L4L LT 1 0 1 2 3 4 5 6 7 8Gross requirements 0 0 0 0 2520 0 0 0 0Schelduled Receipts 0 0 0 0 0 0 0 0 0Projectecd on Hand 0 0 0 0 0 0 0 0 0 0Net Requirements 0 0 0 0 2520 0 0 0 0Planned order Receipts 0 0 0 0 2520 0 0 0 0

Planned order Releases 0 0 0 2520 0 0 0 0 0

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Appendix 4

Documents

BDM2_Sua