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PSI Recommendations

The PSI plan from Prosacco Company outlines production strategies for weeks 40 through 52 for SKUs FP2020, HB0156, and HB1016 based on demand forecasts and current inventory levels. The plan analyzes demand totals, current inventory, and weekly production capacities. It identifies challenges of limited initial inventory for FP2020 and risks of excess inventory for HB0156 and HB1016. Recommendations include increasing FP2020 production weekly, modifying HB0156 production to decrease holding costs, and optimizing HB1016 production to avoid excess inventory holding.

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172 views

PSI Recommendations

The PSI plan from Prosacco Company outlines production strategies for weeks 40 through 52 for SKUs FP2020, HB0156, and HB1016 based on demand forecasts and current inventory levels. The plan analyzes demand totals, current inventory, and weekly production capacities. It identifies challenges of limited initial inventory for FP2020 and risks of excess inventory for HB0156 and HB1016. Recommendations include increasing FP2020 production weekly, modifying HB0156 production to decrease holding costs, and optimizing HB1016 production to avoid excess inventory holding.

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Copyright
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Prosacco Company - PSI Plan Template

Section 1: Introduction

The PSI plan aims to balance customer demand, production capabilities, and inventory
management for Prosacco Company. This plan outlines strategies to optimize production
and meet customer orders efficiently.

Period covered: Week 40 through 52

SKUs included:

● FP2020
● HB0156
● HB1016

Section 2: Demand analysis

Total forecasted demand:

● SKU FP2020: 23,979 units


● SKU HB0156: 886 units
● SKU HB1016: 29,842 units

Section 3: Supply analysis

Current inventory levels:

● SKU FP2020: 4,563 units


● SKU HB0156: 248 units
● SKU HB1016: 4,974 units

Total weekly production capacity per unit:

● SKU FP2020: 3,000 units


● SKU HB0156: 1,000 units
● SKU HB1016: 4,000 units

Other production constraints: None identified

Production plan:
● SKU FP2020: 19,000 units
● SKU HB0156: 1,000 units
● SKU HB1016: 25,000 units

Section 4: Challenges and recommendations

Challenge: Limited initial inventory of SKU FP2020.

Recommendation: Need to increase production of SKU FP2020 on weekly basis as the


projected inventory is more than the available inventory from Week 41 onwards.

Challenge: Risk of excess inventory and long holding times for SKU HB0156.

Recommendation: Production plan for SKU HB0156 to be modified to avoid long holding
time, instead of producing 1000 units in Week 40 it can be planned over the period to
decrease holding cost.

Challenge: Risk of excess inventory for SKU HB1016.

Recommendation: High levels of current inventory is available for SKU HB1016 till the Week
41, production plan to be optimized to avoid holding excess inventory for SKU HB1016 .

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