This is pre-formatted Excel document is specifically designed

students for submitting their SECTION 5 of the assignment of

MOM 122

Students are expected to submit the full Section 5 of the MOM assignment by u
This excel file has 7 steps in 7 tabs. All tabs are compulsory
Please assignment description for detail instruction.
The template is provided to facilitate students, you may modify this template ma
need
s specifically designed to facilitate MSC
5 of the assignment of the module MSC
M 122

of the MOM assignment by using this Excel format

tabs. All tabs are compulsory.
tion for detail instruction.
may modify this template marginally to as per your
ed
 FOREC
In

For forecasting you must use a qunatitiative met

Provide and use c
Provide source of the d
Brifly explain steps taken i
Prepare a chart for show
You may use other method not covered in lec

Talk to the dealer/company representative to find out their ex

Mention the selected method and explain s

Explain step and belwo that show calc

Step 1 : Seasonal Forecasting will be used for this exercise. For seales on Continent 2, in the case of the Volvo XC40
America.

Sold Volvo XC40 America

2018 12420
2019 17647
2020 23778
2021 26802
2022 18558
2023 28143

Step 2 : Data that is used for this calculation comes from https://www.goodcarbadcar.net/volvo-xc40-sales-figures/. F
per quarter by the total demand per year. For the average seasonal factor I added up all the seasonal factors of the ye
divided by 4. The demand of each quarter of 2024 is done by avg seasonal factor of alle years divided by the avg dem
 2020 2021
Quarter Demand Seasonal factor (1) Demand
1 3970 0.67 5804
2 5550 0.93 9062
3 6060 1.02 7223
4 8198 1.38 4713
Total 23778 26802
Average 5945 6701

Demand for the 5th 29234

Avg demand in each quarter of 5th year 7309

Step 3 : Chart with forecasting for 2023 and 2024

2023 2024
Demand Demand Forecasting 2023 an
6083 5953 10000
6067 7656 9000
7478 6955 8000
7000
8515 8670
6000
5000
4000
3000
2000
1000
0
1 2
2023 Demand 2
 FORECASTING
Instruction of students

you must use a qunatitiative methods (e.g., Linear regression, Moving average, Seasonal factor,..).
Provide and use clear formula for any method you use.
Provide source of the data and information you use for calculation
Brifly explain steps taken in the forecasting method in this Excel sheet.
Prepare a chart for showing your forecasting for year 2023 and 2024
other method not covered in lecture. In that case, provide clear sources with link for varification.

epresentative to find out their expecation for future years. Comment on your findings and company expectation.

e selected method and explain steps taken for forecasting (Use Al + Enter to go to enter a line)
n step and belwo that show calculation. Do that for each step (ADD STEPS AS NEEDED)

2, in the case of the Volvo XC40 in America. I choosed this method because the data was easy accesible and it makes clear what the demand

.net/volvo-xc40-sales-figures/. For the forecasting I looked up the sales per quarter of each in America. For the seasonal factor of each year I d
all the seasonal factors of the years and divided by 4. Then I calculated the total for year 5 by doing 2023+(2023-2020)/4. The average of yea
alle years divided by the avg demand of each quarter in year 5.
 2021 2022 2023
Seasonal factor (2) Demand Seasonal factor (3) Demand Seasonal factor (4)
0.87 3987 0.86 6083 0.86
1.35 4834 1.04 6067 0.86
1.08 2998 0.65 7478 1.06
0.70 6739 1.45 8515 1.21
18558 28143
4640 7036

Forecasting 2023 and 2024

2 3 4
2023 Demand 2024 Demand
 tor,..).

on.

mpany expectation.

e)

asy accesible and it makes clear what the demand of the Volvo XC40 is in

America. For the seasonal factor of each year I divided the total demand
y doing 2023+(2023-2020)/4. The average of year 5 done by the total
 2024
Avg. seasonal factor (1+2+3+4/4) Quarter Demand
0.8145 1 5953
1.0476 2 7656
0.9516 3 6955
1.1863 4 8670
Total 29234
Average 7309
 MPS
Instruction o

Along with full calculation for MPS & MRP, make sure that follow

1. Clearly provide Bill-of Material. The BOM sh

2. Assume and provide details about production lot size (Q), Opening inventor
3. Next, provide forecast and actual order for wee
4. Provide formula/remark for each c
5. Add more rows if n

Car GR
Opening inventory (Units) Oi 7500 Oi
Safety stock (Units) SS 1200 IbP
Final assembly Order size (Units) Q 2400 PORT
department
Lead time (month) LT 3 PI
PORS

Part Name GR
Oi SR
Sub-Assembley SS Oi
department Q IbP
LT PORt
PI
PORs
Part Name GR
Oi SR
Sub-Assembley SS Oi
department Q IbP
LT PORt
PI
PORs
Part Name GR
Oi SR
Sub-Assembley
department
Sub-Assembley SS Oi
department Q IbP
LT PORt
PI
PORs
Part Name GR
Oi SR
Part production SS Oi
department Q IbP
LT PORt
PI
Part Name GR
Oi SR
Part production SS Oi
department Q IbP
LT PORt
PI
 MPS/MRP
Instruction of students

MPS & MRP, make sure that following detail in YELLOW cells are clearly provided in your Excel:

rovide Bill-of Material. The BOM should have at-least 3 levels (Level 0, 1 and 2)
uction lot size (Q), Opening inventory (Oi) [Also called On-hand inventory OH], Safety stock (SS) & Lead time (LT).
e forecast and actual order for weeks based on your forecasting (sheet 1) calculation.
Provide formula/remark for each calculation in "Formula/Remark" column
5. Add more rows if needed as per your BOM

Months
Jan Feb Mrt Apr Mei Jun
Formula/Remark 1 2 3 4 5 6
Forecast 2437 2437 2437 2437 2437 2437
Actual order 1985 1985 1985 2552 2552 2552
Gross requirements 2437 2437 2437 2552 2552 2552
Opening inventory 7500 5515
Inventory before production 415 -2022
Planned production MPS 0 0 0 7500
Projected inventory 7085 3078
Production start 7500
Available to promise 5515
Gross requirements
Schedule receipts
Opening inventory
Inventory before production
Planned order receipts
Projected inventory
Planned order releases
Gross requirements
Schedule receipts
Opening inventory
Inventory before production
Planned order receipts
Projected inventory
Planned order releases
Gross requirements
Schedule receipts
Opening inventory
Inventory before production
Planned order receipts
Projected inventory
Planned order releases
Gross requirements
Schedule receipts
Opening inventory
Inventory before production
Planned order receipts
Projected inventory
Gross requirements
Schedule receipts
Opening inventory
Inventory before production
Planned order receipts
Projected inventory
 Example Bill of materal
Months
Jul Aug Sep Okt Nov Dec
7 8 9 10 11 12
2437 2437 2437 2437 2437 2437
2319 2319 2319 2890 2890 2890
2437 2437 2437 2890 2890 2890
 INVENTORY MANAGEMENT
Instruction of students

Along with full calculation for MPS, please make sure that following detail are cle
1. Make sure that you use data provided in assignment description for
2. In the formula section you can write the formula you used to mak
Note: It is your responsibility to make sure that your calculation is clear to the examiner so provid

Symbol Detail Unit

n No. of days in year 365 Day
c Cost of tyre 80 Euro
P Daily demand of cars 80 Units
S Ordering cost 600 Euro
L Lead time 5 Day
xL Std. dev in Leadtime 1 Day
d Daily demand of tyres 400 Units
D Annual demand of tyres 146000 Units
xD Std. dev. in Demand 10 Units
H Annual holding cost 24 Euro
z Z (for 99% service level) 99

E Economic order quantity 552 Units

Y Safety stock 2214 Units

R Re-order point 2000 Units

T Total cost of Inventory € 437,403 Euro

RY MANAGEMENT
Instruction of students

ation for MPS, please make sure that following detail are clearly provided in your Excel:
ure that you use data provided in assignment description for this calculation
e formula section you can write the formula you used to make calculation.
e sure that your calculation is clear to the examiner so provide explanation/formula wherever needed.

Formula Remark

This comes from the internet, 80 euro a tyre for 17 inch Student should assume
Formula 29234/365 From forecasting calculation
Given Given
Given Given
Given Given
80 cars need 5 tyres so the daily demand is 400 tyres Every car needs 5 tyres
Annual demand is 400*365
Given
30% of the cost per tyre

Formula = √2DS/H

Safety stock (SS) = Z*xD*√L

R=d*l

C=dp/2(H)+D/dp(s)+(H)(SS)
80 euro, Volvo XC got R17 tires which the costs lays around 80 euro per tyre
29234 cars in 2024 forcast, daily demand is 80 cars a day
 SHIPMENT CALCU
step 4 a) Sales forecast for the selected dealer

Estimate sales forecast of the selected car model for the selected dealer, supplied by the selected dis
Derive this from earlier forecast data in step 2 (for MPS)

1 # cars per month (assembly of selected model for continent 2)

2 # cars for selected distribution centre (part of continenct 2)

# cars for selected dealer (served by

3
distribution centre on continent 2)

step 4 b) Maritime and Hinterland transport frequencies & capacities

Hinterland (from assembly plant to Export Port (continent 1)

# cars per month (assembly of selected model for continent 2)

Specify selected transport modality (Train/Barge/Truck)

from assembly ==> export Port continent 1 (train, barge or truck)

Capacity per transport movement of selected hinterland modality

Required transport frequency

(How often the selected modality vehicle must travel to transport monthly demand)

Maritime (from Export Port ==> to Import Port)

# cars per month (assembly of selected model for continent 2)

 Ship departure interval (days):
From Export Port on continent 1 ==> Import Port continent 2
(meaning: every XX days a ship departs) - can be average

# cars per ship departure (needed capacity for choosen model)

Example: on average month 5000 cars assembled for continent 2; ship departs every 1,5 month
(45 days); needed capacity is 7500 cars per ship departure
(assume days per month = 30)

step 4 c ) Buffer points

- were would
- mention youwhy
reason expect (and why) the main (biggest) buffers – mention 2
(for each
of the 2 mentioned locations)
- how big are these (in # cars AND surface (m2))
( a buffer is considered a holding area, were finshed cars are waiting for next transport ste

Explanation about buffer points

- Give your reasoning for location of (each of 2) buffer points

- Estimate the size of these buffer points in m2 (in # cars AND in m2 .

Explain calculation steps and used assumptions
 SHIPMENT CALCULATION

or the selected dealer, supplied by the selected distribution centre per month in 2024

Average (per month)

Section 5, step 2 (for MPS)

reasoned assumption
(based on f.i. # population?, or .. ) Volvo is not using a distribution centre in America

reasoned assumption

s & capacities
source average (per month)
rt (continent 1) (in 2024)

Section 5, step 2 (for MPS)

Section 4 A sub c)
input
check literature, ww-web, ..
(# cars)

port monthly demand)

rt) (in 2024)

Section 5, step 2 (for MPS)

input
 Section 4 A sub b)
(days)

continent 2; ship departs every 1,5 month

e

est) buffers – mention 2

ed cars are waiting for next transport ste

ffer points

# cars AND in m2 .
 min (per month) max (per month)

GIve explanation how # cars in step 1, 2 and 3 is calculated [Also include

source/assumption for your information]

Cars go directly to
dealer from ship

min (per month) max (per month)

(in 2024) (in 2024)
GIve explanation for hinterland calculation [Also include source/assump
information]

(in 2024) (in 2024)

GIve explanation for maritime calculation [Also include source/assumpti

information]
GIve explanation for maritime calculation [Also include source/assumpti
information]
and 3 is calculated [Also include
]

ation [Also include source/assumption for your

tion [Also include source/assumption for your

tion [Also include source/assumption for your
 LEAD T

Thin
Starting with orde
Add as many steps as you thin

Process (e.g., order Step

processing, etc, etc ..

Order processing 1

part b -
1

3
 LEAD TIME
LEAD TIME CALCULATION of ORDER TO D

Instruction for students

Think carefully about every relevant process step r
Starting with order by client (with the dealer or online) => to 'ca
Add as many steps as you think is needed. For each step give all details in

Estimated lead time (days)

Description of activities
Minimum Maximum
0 1
Order by client at the dealer

Dealer will place the order at the production location 1 3

Estimated delivery date is provided to costumer 10 15

Vehicle is built and released from factory 90 127

Vehicle is transported to the port awaiting for transport 5 7

Vehicle is shipped 8 13

Hinterland transport to the dealer 7 10

Vehicle arrives at dealer and waits for inspection and registration 2 4

Ready for delivery at dealers location 1 3

Total lead times in DAYs 124 183

Total lead times in WEEKs 18 26

part b - answer the following questions (in th

- Will this lead-time be acceptable for consumers? (check internet sources, use common sense, ..)
Compare the needed lead-time and the desired lead-time

Currently, there are many activities going on in the world (Russia/Ukraine, Houthi, Gaza) which is causing seve
they order a car. The websites of various car manufacturers state that the delivery time is around 4/5 months fo
a lead-time of 18-26 weeks for this VolvoXC40 is acceptable and customers worldwide have accepted the longe

- Explain what can be done to reduce lead time (regardless weather the previously estimated lead time would b
mention 3 different options and it’s consequences in your Supply Chain.
Include an option related to operational strategies (MTO, ATO, MTS, etc)

Options and it's description effect lead time other

Hinterland transport 3-4 days

Better communication dealer and production location 5 days Happier customer

At the moment Volvo makes its cars at MTO strategy to reduce the 10-20 days
lead-time changing to ATO strategy
 of ORDER TO DELIVERY (OTD) lead time

struction for students

levant process step requiring a certain leadtime
er or online) => to 'car ready for deliverey' at dealers location.
tep give all details in R-column

Remark | Explanation | Source

Order is placed by the clienct at the local dealership

Dealer will place the order in the production system of the manufacturer, this is done online

After the production location accept the order it will provide the customer with the estimated deliver date/window. It will take some time
before this message is send to the customer
Building a vehicle takes a few hours but you ordered car needs to wait in line and therefore it takes around 3-5 months before the car will
actually be built (Tusker, sd).
After the vehicle is transported the car will be transported to the export port and will wait for transport to continent 2. Usually only once or
twice a week a ship will sail in this direction so your car has to wait sometime (Volvo, 2019).
Transport from Europe to America by ship takes around 8-13 days
(Volvo, 2024).
After the Volvo arrived at the import port, the Volvo will be shorted at the port and from there will be driven by truck to the selected dealer.
This will also take some time because not everyday there will be a truck going to the selected dealer.
After the Volvo arrived at the selected dealer, this dealership will inspect the car and will registrate this in the car base.
Usually dealerships are quite busy so this will take a few days.

After the Volvo is ready, the dealership and customer make a appointment where the car will be given to the customer.

g questions (in this excel: max 100 words)

which is causing several disruptions in supply chains(Alex, 2023). This is causing long waiting times for customers as
around 4/5 months for each different model. Therefore, I think due to the current situation in the world
ve accepted the longer delivery times.

ted lead time would be Y/N acceptable for consumers).

further remarks / reference(source) / explaination

By changing the hinterland transport in America to more frequent deliveries to the selected dealer will decrease the
lead-time. This can be done by better management of the cars coming into the import port and bringing them together.
By better communication bewteen the dealer and the production location the lead-time of placing and accepting the
order of the customer can reduce the lead time
By making cars ATO instead of MTO, Volvo can produce a lot of cars as stock and then they only have to assemble the
cars to wishes of the customer after producing the bodywork
 PIPELINE INVENTO
Instruction of stu
You may add more steps if you need to. Give also

Step 1 Step 2
Lead time
Demand (car units)
Minimum Maximum
60 18 26

Explanatino of steps
Step 1:
For 2024 the forecast of Volvo XC40 cars is 29.234 cars. In America there are 497 Volvo dealers. For the selected
for the year. The assumption I made is that the cars will be the same at every dealer so Cherry Hill will get 60 Vo
Step 2:
From Step 5: Leadtime, the average leadtime is a minimum of 18 weeks with a maximum of 26 weeks for the Volv

Step 3:
The pipeline inventory for the car units for the selected dealer in Cherry Hill is for the minimum 1080 units and th
Minimum: 60*18=1080
Maximum: 60*26= 1560

Step 4:
The estimated price of the Volvo XC40 lays around $45.000 for each car. For the 60 cars this is a total value of 60*4
Minimum: 18*2.700.000 = $48.600.000
Maximum: 26*2.700.000 = $70.200.000
IPELINE INVENTORY
Instruction of students
may add more steps if you need to. Give also source of your assumption/information

Step 3 Step 4
Pipeline inventory (car units) Pipeline inventory (EUR)
Minimum Maximum Minimum Maximum
1080 1560 € 48,600,000.00 € 70,200,000.00

Explanatino of steps

ere are 497 Volvo dealers. For the selected dealer in Cherry Hill the forecast of cars will be around 60 Volvo XC40
at every dealer so Cherry Hill will get 60 Volvo XC40 in 2024.

s with a maximum of 26 weeks for the Volvo XC40.

ry Hill is for the minimum 1080 units and the maximum 1560 units.

r. For the 60 cars this is a total value of 60*45.000 = $2.700.000

vo XC40
 KPIS for Operations &
KPI name KPI description

Operations KPI

Maritime KPI
Operations & Maritime
KPI formula Example calculation
Remark | Source
 Instruction of studen

MAKE YOUR OWN FO

 Instruction of students

MAKE YOUR OWN FORMAT