Business Plan of The Coffee Shop: Vietnam National University - HCMC International University

Production Management – Group 8
Vietnam National University – HCMC

International University
SCHOOL OF INDUSTRIAL
ENGINEERING & MANAGEMENT
GROUP 8 PROJECT
BUSINESS PLAN OF THE COFFEE SHOP
Advisor: M.Eng. Trần Văn Lý
1
Group 8:
Name Student’s ID
Bùi Trần Thiên Ân IELSIU19103
Lê Ngọc Bảo Châu IELSIU19116
Nguyễn Võ Thanh Dũng IELSIU19135
Đỗ Ngọc Huy IEIEIU18172
Nguyễn Như Thiên Nhã IELSIU19223
Kiều Thị Hồng Nhung IELSIU18113
Nguyễn Trường Phát IEIEIU19064
Nguyễn Chánh Trực IEIEIU17036
Ngô Thị Khánh Uyên IELSIU19090
CONTRIBUTION:
Name Role Percentage of contribution
Nguyễn Chánh Trực Data 100%
Ngô Thị Khánh Uyên Data 100%
Lê Ngọc Bảo Châu Data 100%
Đỗ Ngọc Huy PowerPoint 100%
Nguyễn Võ Thanh Dũng PowerPoint 100%
Nguyễn Như Thiên Nhã Writing Report 100%
Bùi Trần Thiên Ân Writing Report 100%
Kiều Thị Hồng Nhung Presentation 100%
Nguyễn Trường Phát Presentation 100%
2
Table of contents
1. Introduction…………………………………………………………………….3
2. Methodology……………………………………………………………………3
2.1 Framework………………………………………………………………...3
2.2 Data Collection…………………………………………………………….4
2.3 Application…………………………………………………………………......4
2.3.1 Forecasting………………………………………………………………4
2.3.2 Labor Cost………………………………………………………………7
2.3.3 Material Requirements Planning………………………………………9
2.3.4 Break-even analysis………………………………………………….…14
3. Recommendation……………………………………………………………..16
4. References……………………………………………………………………..17
3
1. Introduction
The coffee shop business is becoming more and more popular and attracting many customers of all ages and
careers. However, in recent days, there are still few growth opportunities to compete with existing
businesses; therefore, the employees in coffee stores endeavor to diversify their offerings and drinks to
better compete. From a coffee, other drinks are gradually created and become the hot items of stores.
Among those, Lemongrass orange peach tea and Ice coffee have become one of the most famous drinks in
menu of young generation. According to this trend, Yes Coffee, a small coffee stores constructed on Truong
Tre street in Binh Duong Province has made those hot drinks that has been received enthusiastic support
from majority of students. Both kind of drinks of Yes Coffee are believed to be young people’s long-term
taste not only their delicious aromatic flavour but also good quality materials. For that reason, along with
my interest in such business, we have decided to dick deeper by doing the research about Yes Coffee,
especially about the Lemongrass orange peach tea and Ice coffee. The main object is forecast the demand
for the year 2021 and find out the most possible profit for the coffee store.
2. Methodology
2.1. Framework.
Our report is done according to the steps in the framework below. Some methods have been applied in
production management including forecast, labor cost and material requirement planning and break-even
point to calculate and analyze data.
Current
Data Forecast
Demand
Total
Labor Cost
cost
Material requirement Materials

planning Cost Price of product
Inventory
cost Break-even point
No Total profit
Goal
met?
Yes
4
Do the
business
-Demand Forecasting: refers to the process of predicting the future demand for the company’s product. We
use the seasonal adjustment method to forecast the amount of consumption iced coffee of customers of Yes
Coffee in 2021. A seasonal factor is a numerical value that is multiplied by the normal forecast to get a
seasonally adjusted forecast.
- Labor cost: we calculate the total salary that we expect to pay for staffs to manage and operate the coffee
store.
-Material requirements planning (MRP): is a system for calculating the materials and components needed to
manufacture a product. It consists of three primary steps: taking inventory of the materials and components on
hand, identifying which additional ones are needed and then scheduling their production or purchase.
-Break-even analysis: looks at the level of fixed costs relative to the profit earned by each additional unit
produced and sold.
2.2 Data Collection:

In our report, we research the real data about the demand of two kinds of drinks in Yes Coffee, including
Lemongrass orange peach tea and Iced Coffee, in 2019 and 2020. The data was collected by direct interview
with the coffee store’s manager.
2.3 Application:
2.3.1 Forecasting:
In this research, we use the collected data in 2019 and eleven months in 2020 to determine the demand for
December 2020 and all months of 2021 by seasonal adjustment method. It is recognized that the demand of
Lemongrass orange peach tea and Iced coffee follow the seasonal pattern. For instance, the demand of both
kinds of drinks increased rapidly in the first seven months in 2019 and dropped by the end of this year;
however, there was the significant decrease on consumption of two drinks in the first half of 2020 and the
gradual growth by the end of this year. Therefore, the reasons why we use this method are that seasonal patterns
can show the seasonal behavior of products, and occur on a monthly.
5
DAT Quarte Lemongrass orange peach Iced
A r Period tea coffee
6
1 572 731 We assume that
1 2 826 754
3 1035 1262 1 period = 1 month
4 904 855
2 5 859 709
6 1212 1356
2019
7 496 584
3 8 584 348
9 725 841
10 613 752
4 11 972 957
12 729 862
13 784 842
1 14 597 687
15 308 411
16 186 125
2 17 309 439
18 429 612
2020
19 575 521
3 20 689 601
21 655 797
22 916 994
4 23 973 923
24 569 611
25 558 601
1 26 548 590
27 538 580
28 527 569
2 29 517 559
30 506 548
2021
31 496 538
3 32 486 527
33 475 517
34 465 506 Year Total
4 35 454 496 quantity
36 444 485 2019 6014
2020 6517
Table 1: Forecast demand for 2019,2020,2021 resp
7
Demand 2019 Demand 2020

1600 1200
1400
1000
1200
1000 800
800 600
600 400
400
200 200
0 0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Lemongrass orange peach tea Lemongrass orange peach tea

Iced coffee Iced coffee
Demand 2021
700
600
500
400
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12
Lemongrass orange peach tea

Iced coffee
Line graph demonstrates the demand of Lemongrass orange peach tea and Iced coffee in 2019,2020,2021.
Month (Lemongrass orange peach tea)

Year Total
1 2 3 4 5 6 7 8 9 10 11 12
2019 572 826 1035 904 859 1212 496 584 725 613 972 729 9527
2020 784 597 308 186 309 429 575 689 655 916 973 569 6990
Total 1356 1423 1343 1090 1168 1641 1071 1273 1380 1529 1945 1298 16517
Month (Iced coffee)

Year Total
1 2 3 4 5 6 7 8 9 10 11 12
2019 731 754 1262 855 709 1356 584 348 841 752 957 862 10011
2020 842 687 411 125 439 612 521 601 797 994 923 611 7563
Total 1573 1441 1673 980 1148 1968 1105 949 1638 1746 1880 1473 17574
8
Table 2: The demand of Lemongrass orange peach tea and Iced coffee in 2019,2020 respectively.
Seasonal Adjustments (Lemongrass orange peach tea)

S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12
0.082 0.086 0.081 0.06 0.070 0.099 0.064 0.077 0.083 0.092 0.117 0.078
1 2 3 6 7 4 8 1 6 6 8 6
448 470 444 360 386 542 354 421 456 505 643 429
Seasonal Adjustments (Iced coffee)

S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12
0.095 0.065 0.099
0.09 0.082 2 0.0558 3 0.112 0.0629 0.054 0.0932 3 0.107 0.0838
583 534 620 363 426 730 410 352 607 647 697 546
Table 3: The parametric for the linear trend line of the demand of Lemongrass orange peach tea and Iced
coffee.
By observation, we recognized that the trend demand of both kinds of drinks in Yes Coffee in 2019 and 2020
has differences. In the first half of 2019, the students and the officers returned to their job after Tet holiday, so
the number of customers increased; meanwhile, by the end of 2019 and early 2020, the number of consumers
dropped sharply because of Covid-19 epidemic. However, in generally, the seasonal adjustment method would
seem to be relatively good forecast estimates, reflecting the seasonal variations in the data.
2.3.2 Labor cost:

Since Yes Coffee operates as a wholesaler and only contributes to the preparation of the beverage for the final
customers, so the manufacturing is not considered. This results in unusable aggregate planning.
This is the reason why we only focus on Yes Coffee’s labor cost report. There are seven official permanent
staffs working in the coffee shop.
Staff Cost 15000 VND/h
VND/
Support Cost 100000 month
Working hour 6 hour/day
#employees 7 staffs
1 employee 36 hour/week
Table 4: The wages of employees of Yes Coffee.
Demand Month Total

1 2 3 4 5 6 7 8 9 10 11 12
Lemongrass 448 470 444 360 386 542 354 421 456 505 643 429
orange peach
tea (LOPT)
9
Iced Coffee 583 534 620 363 426 730 410 352 607 647 697 546
Total 1031 100 1064 723 812 1272 764 772 1063 115 1340 975 11973
4 3
Table 5: The forecast demand of Lemongrass orange peach tea and Iced Coffee in 2021.
Month 1 2 3 4 5 6
Workdays 24 18 24 24 24 24
Work Hours 1008 756 1008 1008 1008 1008
Staff need ed 7 7 7 7 7 7
Wages Cost 15120000 11340000 15120000 15120000 15120000 15120000
Support Cost 700000 700000 700000 700000 700000 700000
Month 7 8 9 10 11 12
Workdays 24 24 24 24 24 24
Work Hours 1008 1008 1008 1008 1008 1008
Staff needed 7 7 7 7 7 7
15120000 15120000 15120000 1512000 15120000 15120000
Wages Cost 0
Support Cost 700000 700000 700000 700000 700000 700000
Total Wages Cost 177660000

Total Support Cost 8400000
Total Cost 186060000
Table 6: The labor cost of Yes Coffee in 2021.

According to Table 6, we recognize that each employee works for 24 days per month with flexible 6 hours per
day; it is meant that the staffs can work on one of 3 shifts per day: from 7 a.m. to 1 p.m. for shift 1; from next to
7 p.m. and from next to 1 a.m. However, Yes Coffee spends a week off after Tet Holiday to reward employees
who worked hard during the Tet Holiday. We use some simple formula to calculate the labor cost of Yes
Coffee.
For example, in January:
Workdays: 24 days
Work hours: Workdays x 6 hour/per x 7 staffs = 24 days/month x 6 hour/day x 7 staffs = 1008 hours
Wage cost: Work hours x Staff cost = 1008 hours/month x 15000 = 15120000 VND
Support cost: The number of staffs x Support cost = 7 x 100000 = 700000 VND
Therefore, the total cost of Yes Coffee is 189840000 VND.
10
2.3.3 Material Requirements Planning (MRP):

We apply MRP with the purpose of discovering the quantity of planned orders for Yes Coffee.
To perform MRP, some basic information is necessitated such as Gross requirements; Lot size; Lead time; Low
level cost and some optional ones are Beginning inventory; Scheduled receipts (these depend on each specific
object).
 Product Structure Tree of Lemongrass orange peach tea (LOPT):
Lemongrass orange
peach tea
Tea bag(1) Peach pickles(2) Citronella(5g) Lemon(1) Sugar(5g)
 Product Structure Tree of Iced coffee:
Iced coffee
Black Condensed
Milk(0,1l)
coffee(30g) milk(0,02l)
 Demand of Lemongrass orange peach tea (LOPT) and Iced coffee:
MONTH
1 2 3 4 5 6 7 8 9 10 11 12
LOPT 448 470 444 360 386 542 354 421 456 505 643 429
11
ICED COFFEE 583 534 620 363 426 730 410 352 607 647 697 546
Table 7: The demand of Lemongrass orange peach tea and Iced coffee.
 Item master file:

LOPT Iced Peach Citronella Lemon Sugar Black Milk Condensed
coffee pickles coffee
Tea bag milk
On hand 0 0 489 182 120g 52 65g 960g 127l 35,20l

On order 300, p11 1500, p5 2000g, 20000g,
p5 p9
LLC 0 0 1 1 1 1 1 1 1 1
Lot size Mult 100 Mult 96 Min Max Min Min Mult Mult 12l
1000g 700 1000g 8000g 12l
Min 300
Lead time 4 4 1 1 2 1 4 4
(week)
Table 8: Item files needed for Lemongrass orange peach tea and Iced coffee.
 MRP:
Item: LOPT LLC: 0 MONTH
Lot size: L4L LT: 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 448 470 444 360 386 542 354 421 456 505 643 429
Scheduled receipts
Projected on hand 0 0 0 0 0 0 0 0 0 0 0 0 0
Net requirements 448 470 444 360 286 542 354 421 456 505 643 429
Planned Order Receipts 448 470 444 360 286 542 354 421 456 505 643 429
Planned Order Releases 448 470 444 360 286 542 354 421 456 505 643 429
Table 9: Material requirements of Lemongrass orange peach tea.

Item: ICED COFFEE LLC: 0 MONTH
Lot size: L4L LT: 1 2 3 4 5 6 7 8 9 10 11 12
12
Scheduled receipts
Table 10: Material requirements of Iced coffee.

Item: TEA BAG LLC: 1 MONTH
Lot size: Mult 100 Min 300 LT: 4 1 2 3 4 5 6 7 8 9 10 11 12
Scheduled receipts 300
Net requirements 429 373 333 319 461 315 336 392 497 340 369
Planned Order Receipts 500 400 400 400 500 400 400 400 500 400 400
Planned Order Releases 500 400 400 400 500 400 400 400 500 400 400
Table 11: Material requirements of Tea Bag.

Item: PEACH PICKLES LLC: 1 MONTH
Lot size: Mult 96 LT: 4 1 2 3 4 5 6 7 8 9 10 11 12
Scheduled receipts
Table 12: Material requirements of Peach Pickles.

Item: CITRONELLA LLC: 1 MONTH
Lot size: Min 1000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12
Projected on hnd 120 0 0 0 0 571 0 0 27 0 0 0 0
13
Table 13: Material requirements of Citronella.
Item: LEMON LLC: 1 MONTH
Lot size: Max 700g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12
Scheduled receipts
Table 14: Material requirements of Lemon.

Item: SUGAR LLC: 1 MONTH
Lot size: Min 1000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12
Table 15: Material requirements of Sugar.

Item: BLACK COFFEE LLC: 1 MONTH
Lot size: Min 8000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12
14
Table 16: Material requirements of Black Coffee.
Item: MILK LLC: 1 MONTH
Lot size: Mult 2L LT: 4 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 58.3 53.4 62.0 36.3 42.6 73.0 41.0 35.2 60.7 64.7 69.7 54.6
Projected on hand 127 68.7 15.6 1.6 1.2 78.7 5.7 0.7 1.5 0.8 8.1 10.3 3.7
Net requirements 46.5 34.8 35.3 34.5 59.2 63.9 61.7 44.3
Planned Order Receipts 48 36 36 36 60 72 72 48
Planned Order Releases 48 36 36 36 60 72 72 48
Table 17: Material requirements of Milk.

Item: CONDENSED
MILK LLC: 1 MONTH
Lot size: Mult 2L LT: 4 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 11.67 10.69 12.41 7.27 8.51 14.60 8.20 7.04 12.15 12.95 13.94 10.93
Scheduled receipts
Projected on hand 35.5 23.53 12.85 0.44 5.17 9 6.06 9.87 2.83 2.68 1.73 11.79 0.86
Net requirements 6.83 3.34 5.94 2.13 9.32 10.27 12.21
Planned Order Receipts 12 12 12 12 12 12 24
Planned Order Releases 12 12 12 12 12 12 24
Table 18: Material requirements of Condensed Milk.
Net requirements t = Gross requirements t － (Scheduled receipts t + Projected on hand t-1)

Through the MRP system, we can know exactly the quantity of specific items needed in each month, the time we make an
order and the inventory level of them.
15
 Planned order report:

MONTH
1 2 3 4 5 6 7 8 9 10 11 12
Lemongrass Orange Peach Tea 448 470 444 360 286 542 254 421 456 505 643 429
Iced coffee 583 534 620 363 426 730 410 352 607 647 697 546
Tea bag 500 400 400 400 500 400 400 400 500 400 400
Peach pickles 768 960 864 672 864 1056 672 864 864 1056 1248 864
Citronella 2120 2350 2218 1800 1000 2139 1769 2130 2252 2526 3212 2144
Lemon 396 470 444 360 386 542 354 420 456 505 643 429
Sugar 2175 2350 2218 1801 1000 1639 1769 2103 2279 2526 3212 2144
Black coffee 16539 16030 18611 10902 12771 21893 12292 10558 8000 9645 20914 16391
Milk 48 36 36 36 60 72 72 48
Condensed milk 12 12 12 12 12 12 24
Table 19: Summary of order releases in each month of 2021.

2.3.4 Break-even analysis:
 Bill of material
Tea bag 2000 VND/packet
Peach pickles 500 VND/piece
Citronella 1000 VND/gr
Lemon 500 VND/each
Sugar 1000 VND/gr
Black coffee 500 VND/gr
Milk 500 VND/L
16
Condensed milk 2000 VND/L
1 2 3 4 5 6 7 8 9 10 11 12 PRICE TOTAL
LOPT 448 470 444 360 286 542 254 421 456 505 643 429 13500 70983000
Iced coffee 583 534 620 363 426 730 410 352 607 647 697 546 15090 98339234
Tea bag 500 400 400 400 500 400 400 400 500 400 400 2000 9400000
Peach pickles 960 864 672 864 1056 672 864 864 1056 1248 864 500 4992000
Citronella 2120 2350 2218 1800 1000 2139 1769 2130 2252 2526 3212 2144 1000 25660000
Lemon 396 470 444 360 386 542 354 420 456 505 643 429 500 2702500
Sugar 2175 2350 2218 1801 1000 1639 1769 2103 2279 2526 3212 2144 1000 25216000
Black coffee 16539 16030 18611 10902 12771 21893 12292 10558 8000 9645 20914 16391 500 87273000
Milk 48 36 36 36 60 72 72 48 500 204000
Condensed milk 12 12 12 12 12 12 24 2000 192000
TOTAL 36590 324961733.7
Table 21: The bill of material of specific items in each month in 2021.
 Break-even point analysis:

Fixed cost (Cf) = Total Wages Cost + Total Support Cost 15820000 VND
Variable cost per unit (Cv) = Wages cost per hour + Cost per unit
BE point = Cf/ (price - Cv)
MONTH
LOPT 1 2 3 4 5 6 7 8 9 10 11 1
Demand 448 470 444 360 386 542 354 421 456 505 643 4
Cf 15820000 15820000 15820000 15820000 15820000 15820000 15820000 15820000 15820000 15820000 15820000 1582
Cv 7397.332929 7291.425261 7473.420888 7832.587287 8741.721854 7665.992585 7924.214418 7496.055538 7260.322903 7051.880674 6762.870515 5574.
Sale price (/unit) 45000 45000 45000 45000 45000 45000 45000 45000 45000 45000 45000 45
BE point 421 420 422 426 436 424 427 422 419 417 414 4
17
Table 22: The breakeven analysis of Lemongrass orange peach tea.
In January:
Fix cost = 15 820 000 VND
Variable cost = Wages cost per hour + Cost per unit
= 15820000 ÷ (448 + 500 + 960 + 2120 +396 + 2175) + (2000 + 500 + 1000 + 500 + 1000)
= 7 397.33 VND
Price = 45 000 VND
Break-even point = Fixed cost ÷ (Price － Variable cost)
= 15820000 ÷ (45000 －7397.33)
= 420.71 ≈ 421
The solution will be the same for other 11 months.
Fixed cost (Cf) = Total Wages Cost + Total Support Cost 15470000 VND
MONTH
ICED COFFEE 1 2 3 4 5 6 7 8 9 10 11 1
Demand 583 534 620 363 426 730 410 352 607 647 697 5
Cf 15470000 15470000 15470000 15470000 15470000 15470000 15470000 15470000 15470000 15470000 15470000 1547
Cv 1403.500537 1931.235208 3802.411967 3871.770248 3682.376653 3682.376653 2214.500152 4408.681118 4779.921413 4489.154826 1714.248376 1413.
Sale price (/unit) 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30
BE point 541 551 591 592 588 588 557 605 613 606 547 5
Table 23: The breakeven analysis of Iced Coffee.

In January:
Fix cost = 15 470 000 VND
Variable cost = Wages cost per hour + Cost per unit
= 15470000 ÷ (583 + 16539) + 500
= 1 403.51 VND
18
Price = 30 000 VND
Break-even point = Fixed cost ÷ (Price － Variable cost)
= 15470000 ÷ (30000 － 1403.51)
= 540.91 ≈ 541 (roundup)
The solution will be the same for other 11 months.
This helps Yes Coffee analyze how many products (lemongrass orange peach tea and iced coffee) should be
purchased to cover the total cost. Since at this point, the higher total cost is, the more profit they get.
3. Recommendation:
Diversifying the marketing strategies:
+Keep up with the trend of modern plastic cups that are suitable for young people.
+Having an event to accumulate points for customers which creates long-term connections with loyal
customers.
+Having events to give gifts to customers on holidays, such as: Christmas, Valentine’s Day, etc.
+Combining with technology shipping companies to have more places to sell beverage on online websites.
4. References:
https://searcherp.techtarget.com/definition/material-requirements-planning-MRP
https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/12860-
aggregate-planning.html
https://businessjargons.com/demand-forecasting.html
https://www.investopedia.com/terms/b/breakevenanalysis.asp
19

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Production Management – Group 8

Vietnam National University – HCMC

Advisor: M.Eng. Trần Văn Lý

Material requirement Materials

2.2 Data Collection:

Demand 2019 Demand 2020

Lemongrass orange peach tea Lemongrass orange peach tea

Lemongrass orange peach tea

Month (Lemongrass orange peach tea)

Month (Iced coffee)

Seasonal Adjustments (Lemongrass orange peach tea)

Seasonal Adjustments (Iced coffee)

2.3.2 Labor cost:

Demand Month Total

Total Wages Cost 177660000

Table 6: The labor cost of Yes Coffee in 2021.

2.3.3 Material Requirements Planning (MRP):

Tea bag(1) Peach pickles(2) Citronella(5g) Lemon(1) Sugar(5g)

 Product Structure Tree of Iced coffee:

 Demand of Lemongrass orange peach tea (LOPT) and Iced coffee:

 Item master file:

On hand 0 0 489 182 120g 52 65g 960g 127l 35,20l

Lot size: L4L LT: 1 2 3 4 5 6 7 8 9 10 11 12

Table 9: Material requirements of Lemongrass orange peach tea.

Lot size: L4L LT: 1 2 3 4 5 6 7 8 9 10 11 12

Table 10: Material requirements of Iced coffee.

Lot size: Mult 100 Min 300 LT: 4 1 2 3 4 5 6 7 8 9 10 11 12

Scheduled receipts 300

Projected on hand 489 41 71 27 67 81 39 85 64 8 3 60 31

Table 11: Material requirements of Tea Bag.

Lot size: Mult 96 LT: 4 1 2 3 4 5 6 7 8 9 10 11 12

Projected on hand 182 54 74 51 3 95 67 31 54 6 52 15 22

Table 12: Material requirements of Peach Pickles.

Lot size: Min 1000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12

Scheduled receipts 1500

Projected on hnd 120 0 0 0 0 571 0 0 27 0 0 0 0

Table 13: Material requirements of Citronella.

Item: LEMON LLC: 1 MONTH

Lot size: Max 700g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12

Table 14: Material requirements of Lemon.

Lot size: Min 1000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12

Scheduled receipts 2000

Projected on hand 65 0 0 0 0 1071 0 0 0 0 0 0 0

Table 15: Material requirements of Sugar.

Lot size: Min 8000g LT: 1 1 2 3 4 5 6 7 8 9 10 11 12

Scheduled receipts 20000

Projected on hand 960 0 0 0 0 0 0 0 0 9778 0 0 0

Table 16: Material requirements of Black Coffee.

Item: MILK LLC: 1 MONTH

Lot size: Mult 2L LT: 4 1 2 3 4 5 6 7 8 9 10 11 12

Scheduled receipts 120

Planned Order Receipts 48 36 36 36 60 72 72 48

Planned Order Releases 48 36 36 36 60 72 72 48

Table 17: Material requirements of Milk.

Lot size: Mult 2L LT: 4 1 2 3 4 5 6 7 8 9 10 11 12

Net requirements 6.83 3.34 5.94 2.13 9.32 10.27 12.21

Planned Order Receipts 12 12 12 12 12 12 24

Planned Order Releases 12 12 12 12 12 12 24

Table 18: Material requirements of Condensed Milk.

Net requirements t = Gross requirements t － (Scheduled receipts t + Projected on hand t-1)

 Planned order report:

Table 19: Summary of order releases in each month of 2021.