Value Chain Engineering Systems



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Assignment overview:


You are hired as a supply chain consultant to solve an urgent burning issue from VCES Inc., which is a market leader dedicated to the produc�on and commercialisa�on of industrial products with 9 manufacturing plants and 4 distribu�on centres with 900 employees. They have a 20,000 square meter distribu�on centre (DC) with local and interna�onal customers. The company’s suppliers send products from overseas and domes�c loca�ons. They have different ranges of customers from wholesalers, retailers, and end-users.


The DC/warehouse has a carrying cost per unit per year of $0.50, an order cost of $10 per order and an average lead �me for delivery of 15 days. The warehouse staff include the DC Manager, supply chain analyst, inbound and outbound supervisors and 50 employees. Recently they have received numerous complaints from employees regarding inefficiencies and lack of proper op�miza�on.


Value Chain Engineering Systems


Analysis and Written Research Report


word file


excel sheet


The data you have access to is their demand forecas�ng for 2024, which is the same as their sales and inventory for the same period.


Table 1. Product and cost informa�on


COST $5.00 $2y0.00 $30.00 $1z0.00 $2w.00 $1,x00.00
Type mature product old product, end of life new product launch mature product spare part new product launch
Jan 153 2 43 79 35 13
Feb 21 1 9 78 11 5
Mar 169 2 17 56 88 1
Apr 300 1 0 30 42 1
May 77 4 38 146 73 0
Jun 54 0 144 75 42 1
Jul 109 5 96 41 26 4
Aug 69 0 130 78 102 4
Sep 100 6 11 52 82 2
Oct 100 10 121 103 95 1
Nov 254 3 16 102 134 2
Dec 63 23 79 31 53 4

You are required to provide both a qualita�ve and quan�ta�ve assessment over their opera�onal scenario. Please understand that each task will require both a numerical and a qualita�ve explana�on with reasonable ra�onale.


Task 1:


For each SKU, consider the “cost” row represents the inventory cost. Calculate and display in a table, for each product:


a) The volume of sales in units,


b) Volume of sales in percentage,


c) Annual dollar sales,


d) Annual dollar sales percentage.


e) Classify products into A, B, C categories in a table summarizing the value sales percentage


and the inventory unit’s percentage for each category. Represent the ABC classifica�on


graphically and explain why you considered this distribu�on.


Also, include sugges�ons for the stock management of each of the items based on your analysis and the data provided.


Task 2:


Using the provided data, calculate the 3-month moving average for the aggregated sales for all SKUs from class A. Plot the values and analyse the results, sta�ng why the moving average is a valuable resource and what are the nega�ve aspects of this technique, sugges�ng alterna�ves.


X, Y, Z, W = 1st, 2nd, 3rd, and 4thdigitsof your student ID, respecvely. X=1, Y=3, Z=4, W=7


Task 3:


Create a graph of the monthly forecast for aggregate demand of the products and evaluate the seasonality with a 2-month moving average trend line. Explain the trend of the forecasted data by execu�ng an analysis.


Task 4:


Calculate the order size that will minimize the inventory costs for the year and the level of inventory that will be cri�cal to reordering. Specifically, cite good characteris�cs and value-added prac�ces of an op�mized warehouse.




A�er comple�ng the assignment, submit the following:


1. Spreadsheets Analysis (Excel file) – So�copy must be submited electronically through


Canvas. It should include your student ID number, show your excellent analysis skills with


excel including formulas, tables, important data, filters, etc.


2. Report (Word file) – So�copy must be submited electronically through Canvas. It should


include your student ID number, Execu�ve summary, Introduc�on, Response to Task 1 to


Task 4. Please also include the calcula�ons, all the figures/graphs (created in Excel) in Word


file as well. You need to submit your so�copy report through Turni�n (Canvas). Please note


that you should atach UTS Assignment Cover Sheet (you can download from Assessment


Resources in Canvas) to the first page of your report.


Assignment format


Max Length: 1500 words (Minimum) Font size: 11 pt Times New Roman Line spacing: Double line spacing


Coversheet: Atach standard UTS assignment coversheet Headers: Include name, student number and �tle of your report Footers: Include page numbers and current date


Referencing: Use Harvard/UTS referencing only (See Referencing in the UTS library website)


Use of Scholarly Sources


You may note that each task requires both a quan�ta�ve and qualita�ve answer. For the qualita�ve, please note that you must refer to the contribu�ons of at least eight (8) recent scholarly books/ar�cles/reports (not older than 2018), in addi�on to any materials that have already been assigned for the course. These scholarly sources should specify the Supply Chain issues involved with the crea�on of value to achieve all the benefits of efficient Supply Chain Management.




Feedback will be provided by annota�ng your report with comments and an indica�on on the merit of sec�ons of your report using the following:


Feedback Weigh�ng
Execu�ve Summary, Introduc�on and Conclusion. 10%
Quan�ta�ve Analysis (Calcula�ons and structure) 20%
Qualita�ve Analysis (Spreadsheet and discussion analysis). 60%
Grammar, spelling, referencing (Harvard/UTS only), presenta�on (including use of sub-headings, etc.). 10%

Please note: Questions in relation to the assignment should be posted to the Discussion Board on Canvas. Make sure you have read the Assignment Outline (both here and in Canvas) before you ask your questions. Questions on the assignment that are received via email may not be answered.