Supply Chain Management (Vimto) Case Study Example | Topics and Well Written Essays - 750 words

Supply Chain Management (Vimto) - Case Study ExampleWe will use the three-month moving averages method because only these months will be considered to advance a more accurate figure. Also, this method is very useful for businesses that are in rapidly changing industry, which VIMTO is part of (Winston, 2010). The calculation is as follows2. If the company has a policy to always keep 15,000 stock on hand at all times, and the stock on hand at the depot of June was 10,000, then subtracting the end of June figure from the desired end of July figure will give us the correct answer. In this case, the difference is 5,000. This 5,000 can be added to 30,333 and we can get the output signal figure of 35,333. VIMTO should plan to produce 35,333 products during the month of July so that it has enough to meet its minimum stock requirements.3. Demand for VIMTO may increase if a special take such as Ramadan was held during the month of July. There would be no way to forecast using that same yea rs data because the demand would be smaller during the previous months. The only way to predict it is if there was data from the same time the previous year and then that data could be use to make the