Global Supply Chain Management Assignment: Fine Fruit Cake Co & Human Resource Inc
GLOBAL SUPPLY CHAIN MANAGEMENT
Q2. FINE FRUIT CAKE COMPANY
A. Monthly and annual capacity for fine country fruit cake company.
1. Calculations
.
a. In calculating the monthly and annual capacity, the following assumptions have been made:
• The Company works for five days each week
• There are four weeks in each month
• The opening stock of 100 cakes of each size on 1st of January is not considered while making the calculations
b. From the question, we know that all production is done in batches of 10 kg of only one size of cakes at a time. Therefore we can either have a batch of ten cakes of 1kg each or 5 cakes of 2 kg each.
If we assume that the company can produce an average of 2 batches each of 1kg and 2kg cakes a day, we have the following production:
Cake size (kg) Cakes/ batch Batches/ day Cakes/ day Kg/day Cakes/ wk Kg/wk Cakes/ month kg/
Month
1 10 2 20 20 100 100 400 400
2 5 2 10 20 50 100 200 400
TOTALS 30 40 150 200 600 800
The monthly and annual capacity is therefore presented in Table I below.
Table I: Monthly and annual capacity of Fine Country Fruit Cake Company for the year 2011 MONTH Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
1kg cakes 400 400 400 400 400 400 400 400 400 400 400 400 4800
Weight 400 400 400 400 400 400 400 400 400 400 400 400 4800
2kg cakes 200 200 200 200 200 200 200 200 200 200 200 200 2400
Weight 400 400 400 400 400 400 400 400 400 400 400 400 4800
Total cakes 600 600 600 600 600 600 600 600 600 600 600 600 7200
Total weight 800 800 800 800 800 800 800 800 800 800 800 800 9600
2. Comparison with actual sales for 2010 and forecast demand for 2012
This is presented in Table 2 below
YEAR OF PRODUCTION 2010 2011 2012 FORECAST
1 KG 900 4800 6000 2 KG 1950 2400 3500 TOTAL 4800 7200 13000
From Table 2 above we note that:
• The production of 1 kg cakes in the
Q2. FINE FRUIT CAKE COMPANY
A. Monthly and annual capacity for fine country fruit cake company.
1. Calculations
.
a. In calculating the monthly and annual capacity, the following assumptions have been made:
• The Company works for five days each week
• There are four weeks in each month
• The opening stock of 100 cakes of each size on 1st of January is not considered while making the calculations
b. From the question, we know that all production is done in batches of 10 kg of only one size of cakes at a time. Therefore we can either have a batch of ten cakes of 1kg each or 5 cakes of 2 kg each.
If we assume that the company can produce an average of 2 batches each of 1kg and 2kg cakes a day, we have the following production:
Cake size (kg) Cakes/ batch Batches/ day Cakes/ day Kg/day Cakes/ wk Kg/wk Cakes/ month kg/
Month
1 10 2 20 20 100 100 400 400
2 5 2 10 20 50 100 200 400
TOTALS 30 40 150 200 600 800
The monthly and annual capacity is therefore presented in Table I below.
Table I: Monthly and annual capacity of Fine Country Fruit Cake Company for the year 2011 MONTH Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
1kg cakes 400 400 400 400 400 400 400 400 400 400 400 400 4800
Weight 400 400 400 400 400 400 400 400 400 400 400 400 4800
2kg cakes 200 200 200 200 200 200 200 200 200 200 200 200 2400
Weight 400 400 400 400 400 400 400 400 400 400 400 400 4800
Total cakes 600 600 600 600 600 600 600 600 600 600 600 600 7200
Total weight 800 800 800 800 800 800 800 800 800 800 800 800 9600
2. Comparison with actual sales for 2010 and forecast demand for 2012
This is presented in Table 2 below
YEAR OF PRODUCTION 2010 2011 2012 FORECAST
1 KG 900 4800 6000 2 KG 1950 2400 3500 TOTAL 4800 7200 13000
From Table 2 above we note that:
• The production of 1 kg cakes in the
References: 1. Mvano V. Global Supply Chain Management: Class Material, ESAMI 2012 2. Kyd C. How to Analyze Seasonal Sales. Available from: http://www.exceluser.com/solutions/seasonality-sales.htm 3. Simchi-Levi D, Kaminski and Simchi E.Designing and managing the supply chain- concepts, strategies and case studies. 2011