Final Milestone Group Activity

Topics Coverage: Inventory and Production

Resources: SAP-OEC Computers Database

Group No:
Members:

Problem Scenario:

You are the employees of OEC Computers. Each of your group members must be assigned to the
following positions.

Manager. Leader of the group, the one who will supervise the company’s overall activities.
He/she will be the one to assign the group members for the other positions.

Sales Associate. Responsible for processing sales transactions, such as accepting sales orders,
delivery, and invoicing.

Warehouse Personnel. Responsible for inventory management, such as purchasing/producing

products for the inventory of items and to anticipate items that are already in low stock levels.

Cashier. Responsible for the incoming and outgoing payments, and returning of goods.

Accountant. Analyzes the journal entries of all the documents.

Problem 1:

Think of 2 computer products that are being produced by your company and are not yet found
in the database of OEC Computers. These products have a lead time of 2 days and a minimum order
quantity/multiple of 5 pieces. Create an item master data for these items and for all the components
used in making these products. Create a bill of materials for the two products. You should have at least
five materials/components used in making your parent item, and there should be at least two
components common to both of the two products. For you to have stocks of materials/components of
your product, purchase 50 pieces for each of these materials from your preferred vendor (choose the
existing vendors in your database).

Create a sales package item, which is a combination of at least three items from the two
products that you produced above combined with any of the existing products in the AOC database, or if
not possible create a new master data for the additional component in your sales package.

List down below the current inventory status of your produced products and all the
materials/components needed.

Item In Stock Committed Ordered Available

Product 1
Product 2
Product 3 ( sales package item)
Component 1
Component 2
.
.
.
Component n
 Print the screenshot of the actual inventory from SAP and the screenshots of documents used
for the purchase of these items, such as the Item Master Data, Purchase Order, Goods Receipt PO, Bills
of Materials, etc.

Think of 2 companies that will be your regular customers and create a master record for these
customers.

You received a sales order from your two regular customers above for the following items. The
first customer ordered 30 pieces of your first produced item (product 1) and 20 pieces of the sales
package item; both are due for delivery two days from now. The second customer ordered 30 pieces of
the sales package item, due for delivery five days from now.

Run MRP for the two products and the sales package item (use only a time horizon of 10 days,
do not set a forecast anymore). Save the generated order recommendations. Purchase from your
preferred vendor/s all the materials (items) needed in production, and then produce the two products
as recommended by your MRP run.

List down below the new inventory status of all the items involved after you reported the
completion of production.

Item In Stock Committed Ordered Available

Product 1
Product 2
Product 3 ( sales package item)
Component 1
Component 2
.
.
.
Component n

Print the screenshots of the actual inventory from SAP and the screenshots of documents
related to the production process, such as the MRP Run Result, MRP Order Recommendations,
Production Order, Purchases (GRPO/Invoice), etc.

Deliver the first sales order to your first customer two days later, and the second-order from
your second customer after five days.

Ten of the first product delivered to your first customer is returned due to claim that some of
their components did not conform to the customer’s standards. Receive these items from your
customer by posting a return document. Post a disassembly production order for these returned items
to return all the components used to the inventory.

List down again below the new inventory status of all the items involved after you reported the
completion of disassembly production.

Item In Stock Committed Ordered Available

Product 1
Product 2
Product 3 ( sales package item)
Component 1
Component 2
.
.
.
Component n

Print the screenshots of the actual inventory from SAP and the screenshots of documents
related to the disassembly production process, such as Return, Production Order, etc.
 Process all the payment transactions (incoming and outgoing payments) from all the purchases
and sales of the company involved in this activity, then print the screenshots of the documents.

Problem 2:

a. Analyze and interpret the inventory status of the two items/products by comparing the
inventory status tables above.

b. Analyze the MRP Run and MRP Recommendations results.

c. Prepare a synthesis by articulating the challenges you have experienced while working on this
activity. Each of the members will discuss it based on the position assigned to him/her.

d. A printed copy of your output will be submitted at the end of this milestone activity.

Note: Make everyone in the group feel free to discuss for the things to do before, during, and after the
process of solving the problem.

Good Luck!