LYF Consulting

786 views

Published on

Presentation for Business Processes (Year 3 Term 1)

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
786
On SlideShare
0
From Embeds
0
Number of Embeds
31
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

LYF Consulting

  1. 1. LYF will guide you home
  2. 2. Today’s Agenda The client Killiney Kopitiam The product and current policy Bandung Order Flow The problem Inventory issues and the current system Proposed solution The Wagner Whitin Algorithm Comparison with current system Recommendation and Conclusion
  3. 3. The Client
  4. 4. Killiney Kopitiam Palm Valley Café Pte. Ltd. SMU Branch S.K. Lee Managing Director Employees
  5. 5. The Extended Concept Customer is King. Customer Feedback Serve the Customers And Suggestions Change/Expand Menu
  6. 6. The Product and Current Policy
  7. 7. Bandung Uses special Nestle milk $1.20/cup 60% milk 40% rose syrup + water
  8. 8. Current Demand Demand 1st Week 2nd 3rd 4th Week Week Week
  9. 9. Order Process Flow Order Details Estimate Sales Preparation Demand Manual Stock Order via Phone Check Order Fulfillment
  10. 10. ?
  11. 11. Problem Analysis Opportunity Cost of Storage 2 boxes every 2 weeks Increasing customers High Order Cost ONLY Nestle milk $20 delivery charge Min. order of 1 box (6 packets)
  12. 12. Current System t 1 2 3 4 Dt 5 6 6 6 Qt 12 0 12 0 It 7 1 7 1 Setup cost $20.00 $0.00 $20.00 $0.00 Monthly Total Holding cost $4.27 $4.27 $4.27 $4.27 $108.32 Sub-Total $49.89 $4.27 $49.89 $4.27
  13. 13. The Proposed Solution
  14. 14. Assumptions Setup Cost = Delivery Cost (fixed) Holding Cost Unquantifiable labor cost Electricity Cost from Beverage-Air fridge (1.2 kWh) 21.15 cents/kWh (Singapore Power) Production Cost (opportunity cost) 1 packet of milk (5.67 liters) = $5.67 - 1 box with 6 packets = $34.02 Interest Rate 3.5% per annum (DBS) Deterministic Demand
  15. 15. $4.27 Holding Cost (interest rate per week * production cost) + Electricity Cost
  16. 16. The Power of Whitin Wagner Whitin Input Output Algorithm Assumptions The Proposed And Given Data Solution
  17. 17. Cost Comparison $84.27 $108.32 Current Wagner Whitin System Optimal Solution
  18. 18. 22%
  19. 19. Current System vs. Wagner Whitin
  20. 20. Order Quantity MILK MILK MILK Current Wagner Whitin System
  21. 21. Storage MILK MILK MILK Current Wagner Whitin System
  22. 22. Order Frequency Current Wagner Whitin System
  23. 23. Summary of Benefits ↓Opportunity cost of storage ↑Cost savings of $24.05 ↑Flexibility
  24. 24. Recommendations 1 Box | Week | Compartment
  25. 25. Conclusion Proposed Consultation Fee Looking forward SMU Law School S.K. Lee’s Comments
  26. 26. Q&A

×