sku rationalizing

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Materials and packaging

Raw materials and packaging
Descpription Item number Type of product Shelf life (days) Lead time (days) Annual usage Unit of measure(uom) Cost per uom Annual cost ABC Frequency Total cost to count Total hours used
Chicken wings 1000 Raw material 7 5 3,000,000.00 lbs $ 2.29 $ 6,870,000
Chicken tenders 1001 Raw material 10 5 7,000,000.00 lbs $ 1.96 $ 13,720,000
Boneless dark meat 1002 Raw material 9 5 1,000,000.00 lbs $ 1.56 $ 1,560,000
Brisket 1003 Raw material 14 5 8,000,000.00 lbs $ 4.00 $ 32,000,000
Chopped beef 1004 Raw material 14 5 15,000,000.00 lbs $ 3.50 $ 52,500,000
Ends and pieces 1005 Raw material 14 5 1,000,000.00 lbs $ 4.75 $ 4,750,000
Sliced pork 1006 Raw material 12 5 1,000,000.00 lbs $ 2.75 $ 2,750,000
Pulled pork 1007 Raw material 14 5 12,000,000.00 lbs $ 3.40 $ 40,800,000
Ends and pieces 1008 Raw material 12 5 2,000,000.00 lbs $ 4.50 $ 9,000,000
BBQ base 1 1009 Raw material 180 10 200,000.00 lbs $ 0.25 $ 50,000
BBQ base 2 1010 Raw material 180 10 210,000.00 lbs $ 0.25 $ 52,500
BBQ base 3 1011 Raw material 180 10 12,000.00 lbs $ 0.25 $ 3,000
BBQ base 4 1012 Raw material 180 10 78,000.00 lbs $ 0.35 $ 27,300
BBQ base 5 1013 Raw material 180 10 24,000.00 lbs $ 0.35 $ 8,400
Spice 1 1014 Raw material 360 25 1,000.00 lbs $ 0.15 $ 150
Spice 2 1015 Raw material 360 25 1,400.00 lbs $ 0.16 $ 224
Spice 3 1016 Raw material 360 25 1,800.00 lbs $ 0.31 $ 558
Spice 4 1017 Raw material 360 10 2,200.00 lbs $ 0.33 $ 726
Spice 5 1018 Raw material 360 12 2,600.00 lbs $ 0.35 $ 910
Spice 6 1019 Raw material 360 25 1,200.00 lbs $ 0.37 $ 444
Spice 7 1020 Raw material 360 12 780.00 lbs $ 0.39 $ 304
Spice 8 1021 Raw material 360 25 671.00 lbs $ 0.41 $ 275
Spice 9 1022 Raw material 360 25 98.00 lbs $ 0.43 $ 42
Spice 10 1023 Raw material 360 25 238.00 lbs $ 0.45 $ 107
Spice 11 1024 Raw material 360 20 378.00 lbs $ 0.65 $ 246
Spice 12 1025 Raw material 360 14 518.00 lbs $ 0.99 $ 513
Spice 13 1026 Raw material 360 20 658.00 lbs $ 1.33 $ 875
Spice 14 1027 Raw material 360 20 798.00 lbs $ 1.67 $ 1,333
Spice 15 1028 Raw material 360 20 1,600.00 lbs $ 2.01 $ 3,216
Spice 16 1029 Raw material 180 20 1,800.00 lbs $ 2.35 $ 4,230
Spice 17 1030 Raw material 140 20 1,000.00 lbs $ 2.69 $ 2,690
Spice 18 1031 Raw material 100 20 200.00 lbs $ 3.03 $ 606
Spice 19 1032 Raw material 60 20 600.00 lbs $ 3.37 $ 2,022
Spice 20 1033 Raw material 20 20 1,345.00 lbs $ 27.98 $ 37,633
Tray 1 1034 Packaging 360 21 120,000,000.00 each $ 0.25 $ 30,000,000
Tray 2 1035 Packaging 360 21 80,000,000.00 each $ 0.25 $ 20,000,000
Tray 3 1036 Packaging 360 21 40,000,000.00 each $ 0.25 $ 10,000,000
Carton 1 1037 Packaging 360 21 2,000,000.00 each $ 0.15 166,666.67 $ 300,000
Carton 2 1038 Packaging 360 21 3,000,000.00 each $ 0.15 250,000.00 $ 450,000
Carton 3 1039 Packaging 360 21 15,000,000.00 each $ 0.15 1,250,000.00 $ 2,250,000
Carton 4 1040 Packaging 360 21 20,000,000.00 each $ 0.15 1,666,666.67 $ 3,000,000
Carton 5 1041 Packaging 360 21 1,500,000.00 each $ 0.15 125,000.00 $ 225,000
Carton 6 1042 Packaging 360 21 2,000,000.00 each $ 0.15 166,666.67 $ 300,000
Carton 7 1043 Packaging 360 21 2,500,000.00 each $ 0.15 208,333.33 $ 375,000
Carton 8 1044 Packaging 360 21 3,000,000.00 each $ 0.15 250,000.00 $ 450,000
Carton 9 1045 Packaging 360 21 3,500,000.00 each $ 0.15 291,666.67 $ 525,000
Carton 10 1046 Packaging 360 21 4,000,000.00 each $ 0.15 333,333.33 $ 600,000
Carton 11 1047 Packaging 360 21 4,500,000.00 each $ 0.15 375,000.00 $ 675,000
Carton 12 1048 Packaging 360 21 5,000,000.00 each $ 0.15 416,666.67 $ 750,000
Carton 13 1049 Packaging 360 21 5,500,000.00 each $ 0.15 458,333.33 $ 825,000
Carton 14 1050 Packaging 360 21 6,000,000.00 each $ 0.15 500,000.00 $ 900,000
Carton 15 1051 Packaging 360 21 6,500,000.00 each $ 0.15 541,666.67 $ 975,000
Carton 16 1052 Packaging 360 21 7,000,000.00 each $ 0.15 583,333.33 $ 1,050,000
Carton 17 1053 Packaging 360 21 7,500,000.00 each $ 0.20 625,000.00 $ 1,500,000
Carton 18 1054 Packaging 360 21 8,000,000.00 each $ 0.20 666,666.67 $ 1,600,000
Carton 19 1055 Packaging 360 21 8,500,000.00 each $ 0.20 708,333.33 $ 1,700,000
Carton 20 1056 Packaging 360 21 9,000,000.00 each $ 0.20 750,000.00 $ 1,800,000
Carton 21 1057 Packaging 360 21 9,500,000.00 each $ 0.20 791,666.67 $ 1,900,000
Carton 22 1058 Packaging 360 21 7,500,000.00 each $ 0.20 625,000.00 $ 1,500,000
Carton 23 1059 Packaging 360 21 9,800,000.00 each $ 0.20 816,666.67 $ 1,960,000
Carton 24 1060 Packaging 360 21 4,960,000.00 each $ 0.20 413,333.33 $ 992,000
Carton 25 1061 Packaging 360 21 9,400,000.00 each $ 0.20 783,333.33 $ 1,880,000
Carton 26 1062 Packaging 360 21 9,200,000.00 each $ 0.20 766,666.67 $ 1,840,000
Carton 27 1063 Packaging 360 21 6,900,000.00 each $ 0.20 575,000.00 $ 1,380,000
Carton 28 1064 Packaging 360 21 8,800,000.00 each $ 0.20 733,333.33 $ 1,760,000
Carton 29 1065 Packaging 360 21 8,600,000.00 each $ 0.20 716,666.67 $ 1,720,000
Carton 30 1066 Packaging 360 21 3,840,000.00 each $ 0.20 320,000.00 $ 768,000
Carton 31 1067 Packaging 360 21 4,200,000.00 each $ 0.20 350,000.00 $ 840,000
Carton 32 1068 Packaging 360 21 8,000,000.00 each $ 0.20 666,666.67 $ 1,600,000
Carton 33 1069 Packaging 360 21 13,800,000.00 each $ 0.25 1,150,000.00 $ 3,450,000
Carton 34 1070 Packaging 360 21 5,600,000.00 each $ 0.25 466,666.67 $ 1,400,000
Carton 35 1071 Packaging 360 21 200,000.00 each $ 0.25 16,666.67 $ 50,000
Carton 36 1072 Packaging 360 21 190,000.00 each $ 0.25 15,833.33 $ 47,500
Carton 37 1073 Packaging 360 21 180,000.00 each $ 0.25 15,000.00 $ 45,000
Carton 38 1074 Packaging 360 21 170,000.00 each $ 0.25 14,166.67 $ 42,500
Carton 39 1075 Packaging 360 21 4,160,000.00 each $ 0.25 346,666.67 $ 1,040,000
Carton 40 1076 Packaging 360 21 155,000.00 each $ 0.25 12,916.67 $ 38,750
Carton 41 1077 Packaging 360 21 385,000.00 each $ 0.25 32,083.33 $ 96,250
Carton 42 1078 Packaging 360 21 130,000.00 each $ 0.25 10,833.33 $ 32,500
Carton 43 1079 Packaging 360 21 120,000.00 each $ 0.25 10,000.00 $ 30,000
Carton 44 1080 Packaging 360 21 110,000.00 each $ 0.25 9,166.67 $ 27,500
Carton 45 1081 Packaging 360 21 100,000.00 each $ 0.25 8,333.33 $ 25,000
Shipping case 1 1082 Packaging 120 5 3,000,000.00 each $ 0.75 $ 2,250,000
Shipping case 2 1083 Packaging 120 5 4,000,000.00 each $ 0.75 $ 3,000,000
Shipping case 3 1084 Packaging 120 5 2,500,000.00 each $ 0.75 $ 1,875,000
Shipping case 4 1085 Packaging 120 5 9,000,000.00 each $ 0.75 $ 6,750,000
Shipping case 5 1086 Packaging 120 5 900,000.00 each $ 0.75 $ 675,000
Shipping case 6 1087 Packaging 120 5 600,000.00 each $ 1.25 $ 750,000
Film 1 1088 Packaging 360 21 200,000,000.00 each print $ 0.05 $ 10,000,000
Film 2 1089 Packaging 360 21 35,000,000.00 each print $ 0.05 $ 1,750,000
Film 3 1090 Packaging 360 21 5,000,000.00 each print $ 0.05 $ 250,000
Vegetable 1 1091 Raw material 120 30 30,000,000.00 lbs $ 0.27 $ 8,100,000
Vegetable 2 1092 Raw material 120 30 18,000,000.00 lbs $ 0.47 $ 8,460,000
Vegetable 3 1093 Raw material 120 30 5,000,000.00 lbs $ 0.67 $ 3,350,000
Vegetable 4 1094 Raw material 120 30 6,000,000.00 lbs $ 0.87 $ 5,220,000
Vegetable 5 1095 Raw material 120 60 1,000,000.00 lbs $ 1.07 $ 1,070,000
Frozen beef 1096 Raw material 180 15 1,400,000.00 lbs $ 1.65 $ 2,310,000
Fresh beef 1097 Raw material 14 15 300,000.00 lbs $ 1.79 $ 537,000
Deboned chicken 1098 Raw material 10 15 3,000,000.00 lbs $ 1.98 $ 5,940,000
Labels (shipping) 1 1099 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels (shipping) 2 1100 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels (shipping) 3 1101 Packaging 180 14 2,500,000.00 each $ 0.10 $ 250,000
Labels (shipping) 4 1102 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels (shipping) 5 1103 Packaging 180 14 720,000.00 each $ 0.10 $ 72,000
Labels (shipping) 6 1104 Packaging 180 14 50,000.00 each $ 0.10 $ 5,000
Labels (shipping) 7 1105 Packaging 180 14 10,000.00 each $ 0.10 $ 1,000
Labels (shipping) 8 1106 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels (shipping) 9 1107 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels (shipping) 10 1108 Packaging 180 14 1,000,000.00 each $ 0.10 $ 100,000
Labels work in process 1 1109 Packaging 180 14 5,000,000.00 each $ 0.45 $ 2,250,000
Labels work in process 2 1110 Packaging 180 14 2,500,000.00 each $ 0.35 $ 875,000
Dry food ingredient 1 1111 Raw material 180 5 350,000.00 lbs $ 0.50 $ 175,000
Dry food ingredient 2 1112 Raw material 180 7 375,000.00 lbs $ 0.52 $ 195,000
Dry food ingredient 3 1113 Raw material 180 9 400,000.00 lbs $ 0.54 $ 216,000
Dry food ingredient 4 1114 Raw material 180 11 425,000.00 lbs $ 0.56 $ 238,000
Dry food ingredient 5 1115 Raw material 180 13 450,000.00 lbs $ 0.58 $ 261,000
Dry food ingredient 6 1116 Raw material 180 15 475,000.00 lbs $ 0.60 $ 285,000
Dry food ingredient 7 1117 Raw material 180 17 500,000.00 lbs $ 0.62 $ 310,000
Dry food ingredient 8 1118 Raw material 180 19 525,000.00 lbs $ 0.64 $ 336,000
Dry food ingredient 9 1119 Raw material 200 21 550,000.00 lbs $ 0.66 $ 363,000
Dry food ingredient 10 1120 Raw material 200 23 575,000.00 lbs $ 0.68 $ 391,000
Dry food ingredient 11 1121 Raw material 200 25 600,000.00 lbs $ 0.70 $ 420,000
Dry food ingredient 12 1122 Raw material 200 27 625,000.00 lbs $ 0.66 $ 412,500
Dry food ingredient 13 1123 Raw material 200 29 1,650,000.00 lbs $ 0.62 $ 1,023,000
Dry food ingredient 14 1124 Raw material 200 31 1,675,000.00 lbs $ 0.58 $ 971,500
Dry food ingredient 15 1125 Raw material 200 33 700,000.00 lbs $ 0.54 $ 378,000
Dry food ingredient 16 1126 Raw material 240 35 725,000.00 lbs $ 0.50 $ 362,500
Dry food ingredient 17 1127 Raw material 240 37 750,000.00 lbs $ 0.46 $ 345,000
Dry food ingredient 18 1128 Raw material 240 39 775,000.00 lbs $ 0.42 $ 325,500
Dry food ingredient 19 1129 Raw material 240 41 800,000.00 lbs $ 0.38 $ 304,000
Dry food ingredient 20 1130 Raw material 240 43 825,000.00 lbs $ 0.34 $ 280,500
Dry food ingredient 21 1131 Raw material 225 45 850,000.00 lbs $ 0.30 $ 255,000
Dry food ingredient 22 1132 Raw material 210 47 875,000.00 lbs $ 0.26 $ 227,500
Dry food ingredient 23 1133 Raw material 195 49 900,000.00 lbs $ 0.22 $ 198,000
Dry food ingredient 24 1134 Raw material 180 51 925,000.00 lbs $ 0.18 $ 166,500
Dry food ingredient 25 1135 Raw material 165 53 950,000.00 lbs $ 0.25 $ 237,500
Dry food ingredient 26 1136 Raw material 150 55 975,000.00 lbs $ 0.35 $ 341,250
Dry food ingredient 27 1137 Raw material 130 57 10,000,000.00 lbs $ 0.45 $ 4,500,000
Dry food ingredient 28 1138 Raw material 110 59 8,000,000.00 lbs $ 0.55 $ 4,400,000
Dry food ingredient 29 1139 Raw material 90 61 6,000,000.00 lbs $ 0.65 $ 3,900,000
Dry food ingredient 30 1140 Raw material 70 63 4,000,000.00 lbs $ 0.75 $ 3,000,000
Dry food ingredient 31 1141 Raw material 50 65 2,000,000.00 lbs $ 0.75 $ 1,500,000
Dry food ingredient 32 1142 Raw material 30 67 1,500,000.00 lbs $ 0.75 $ 1,125,000
Total column F - 0 Total columns FTE
- 0

Instructions ABC Cycle count

All yellow boxes on Materials and packaging tab must be populated using an Excel formula. Usiing material from Skills Development in the Final Assignment tab you will sort the items as needed and develop a workable ABC analysis and a cycle count plan. Column K will be the total cost on an annual basis. It is your choice to conduct the ABC anlaysis using either total annual usage in pounds or unit of measure, total annual cost, or any other method as referenced in the powerpoint. Column L will have a designation in each cell either A, B, C. Column M will be the frequency that the counts occur. A items should be less than 8 days (weekly). B items should be 30 to 60 days, and C items 90 to 180 days. You may choose to make all A items the same time (recommended) or some combination of frequency as long as it is within the paramenters stated above. All B items and C items will follow this same pattern. Example and Exception: If you decide to count all A items weekly but identify one item as problematic and wish to count it more frequently that is allowable. Column N is the cost to count. Assume each count takes 27 minutes to complete using one employee that is paid $18.75 per hour with a fully loaded labor rate with fringes of $25.50 per hour. The sum of column N will be the total annual cost. The sum of column M will be the total number of counts needed annually. Column O will be the time in hours to count each item and will be needed to calculate final cost. The rationale and decisions that go into your analysis will be included in the Executive Summary and should include a chart, table or graph similar to the examples in the powerpoint The Finance and accounting Departments of your company remind you a rule exists that states that every item wheter a material or a finished good must be counted at least twice per year. The reason you are conducting the ABC analysis is the plant has an issue with running out of material and either making a mid shift unplanned changeover or losses the last 15 to 90 minutes of a shift as the changeover cannot be accomplished in a manner that makes it worthwhile to hold the crew. Estimates are that up to 2.5% of run time is lost to short shifts and unplanned changes. Studies suggest than 1% could be eliminated with a rodust cycle count program. Approximately 1% is related to changeovers that cannot be avoided and .5% is related to supplier issues. You are permitted to recommend the cycle count program that just meets the company requirements (which is already in place) and you will get 70% on this problem as long as you

Finished goods Before

Finished goods Before
SKU Profit per case (Total Revenue- Total Cost) Cases avg cases per line hour Efficiency factor line hrs per case Required line hours Required shifts number of lines Shifts per day Days per week Weeks per year minutes per line shift Shifts per year Effective Capacity cases per hour
FG 1037 $ 2.00 166,666 1160 0.870 0.000862069 - 0 4 2 5.29 50 450 2116 1333.0
FG 1038 $ 2.00 250,000 1200 0.900 0.0008333333
FG 1039 $ 2.00 1,150,000 1333 1.000 0.0007501875
FG 1040 $ 2.00 1,500,000 1333 1.000 0.0007501875
FG 1041 $ 2.00 100,000 1050 0.788 0.000952381
FG 1042 $ 2.00 166,667 1140 0.855 0.000877193
FG 1043 $ 2.00 208,333 1180 0.885 0.0008474576
FG 1044a $ 2.00 250,000 1220 0.915 0.0008196721
FG 1045 $ 2.00 291,667 1220 0.915 0.0008196721
FG 1046 $ 2.00 333,333 1220 0.915 0.0008196721
FG 1047 $ 2.00 375,000 1220 0.915 0.0008196721
FG 1048 $ 2.00 416,667 1220 0.915 0.0008196721
FG 1049a $ 1.60 475,000 1105 0.829 0.0009049774
FG 1050 $ 2.00 500,000 1240 0.930 0.0008064516
FG 1051 $ 2.00 541,667 1250 0.938 0.0008
FG 1052 $ 2.00 583,333 1270 0.953 0.0007874016
FG 1053 $ 2.25 525,000 1300 0.975 0.0007692308
FG 1054 $ 2.00 620,000 1310 0.983 0.0007633588
FG 1055 $ 1.85 700,000 1260 0.945 0.0007936508
FG 1056 $ 1.95 550,000 1325 0.994 0.000754717
FG 1057a $ 2.00 601,000 1275 0.956 0.0007843137
FG 1058 $ 2.00 625,000 1280 0.960 0.00078125
FG 1059 $ 2.29 816,667 1100 0.825 0.0009090909
FG 1060 $ 2.00 413,333 1220 0.915 0.0008196721
FG 1061 $ 2.00 783,333 1325 0.994 0.000754717
FG 1062 $ 2.55 766,667 1325 0.994 0.000754717
FG 1063 $ 2.00 575,000 1260 0.945 0.0007936508
FG 1064 $ 2.00 733,333 1325 0.994 0.000754717
FG 1065 $ 2.00 716,667 1245 0.934 0.0008032129
FG 1066a $ 2.00 320,000 1220 0.915 0.0008196721
FG 1067 $ 2.00 350,000 1220 0.915 0.0008196721
FG 1068 $ 2.12 535,000 1300 0.975 0.0007692308
FG 1069 $ 2.00 1,031,700 1333 1.000 0.0007501875
FG 1070 $ 2.00 466,667 1230 0.923 0.0008130081
FG 1071 $ 2.00 16,667 1000 0.750 0.001
FG 1072a $ 2.00 15,833 1330 0.998 0.0007518797
FG 1073a $ 2.00 15,000 900 0.675 0.0011111111
FG 1074a $ 2.00 14,167 1210 0.908 0.0008264463
FG 1075 $ 2.00 300,000 1220 0.915 0.0008196721
FG 1076a $ 2.00 14,000 1110 0.833 0.0009009009
FG 1077 $ 2.00 32,083 1000 0.750 0.001
FG 1078a $ 2.00 10,900 1110 0.833 0.0009009009
FG 1079a $ 2.00 10,200 780 0.585 0.0012820513
FG 1080a $ 1.55 9,300 750 0.563 0.0013333333
FG 1081a $ 1.95 8,670 933.3 0.700 0.0010714286
Total cases 18,884,519 - 0 Totals
Productivity Average cases/line hr

Finished goods After

Finished goods After
SKU Profit per case (Total Revenue- Total Cost) Cases Before Cases After avg cases per line hour before avg cases per line hour after ABC Efficiency factor line hrs per case after ABC Set up hours required Required line hours Required shifts number of lines Shifts per day Days per week Weeks per year minutes per line shift Shifts per year Effective Capacity cases per hour
FG 1037 $ 2.00 166,666 1160 0.870 4 2 5 50 450 2000 1333.0
FG 1038 $ 2.00 250,000 1200 0.900
FG 1039 $ 2.00 1,150,000 1333 1.000
FG 1040 $ 2.00 1,500,000 1333 1.000
FG 1041 $ 2.00 100,000 1050 0.788
FG 1042 $ 2.00 166,667 1140 0.855
FG 1043 $ 2.00 208,333 1180 0.885
FG 1044a $ 2.00 250,000 1220 0.915
FG 1045 $ 2.00 291,667 1220 0.915
FG 1046 $ 2.00 333,333 1220 0.915
FG 1047 $ 2.00 375,000 1220 0.915
FG 1048 $ 2.00 416,667 1220 0.915
FG 1049a $ 1.60 475,000 1105 0.829
FG 1050 $ 2.00 500,000 1240 0.930
FG 1051 $ 2.00 541,667 1250 0.938
FG 1052 $ 2.00 583,333 1270 0.953
FG 1053 $ 2.25 525,000 1300 0.975
FG 1054 $ 2.00 620,000 1310 0.983
FG 1055 $ 1.85 700,000 1260 0.945
FG 1056 $ 1.95 550,000 1325 0.994
FG 1057a $ 2.00 601,000 1275 0.956
FG 1058 $ 2.00 625,000 1280 0.960
FG 1059 $ 2.29 816,667 1100 0.825
FG 1060 $ 2.00 413,333 1220 0.915
FG 1061 $ 2.00 783,333 1325 0.994
FG 1062 $ 2.55 766,667 1325 0.994
FG 1063 $ 2.00 575,000 1260 0.945
FG 1064 $ 2.00 733,333 1325 0.994
FG 1065 $ 2.00 716,667 1245 0.934
FG 1066a $ 2.00 320,000 1220 0.915
FG 1067 $ 2.00 350,000 1220 0.915
FG 1068 $ 2.12 535,000 1300 0.975
FG 1069 $ 2.00 1,031,700 1333 1.000
FG 1070 $ 2.00 466,667 1230 0.923
FG 1071 $ 2.00 16,667 1000 0.750
FG 1072a $ 2.00 15,833 1330 0.998
FG 1073a $ 2.00 15,000 900 0.675
FG 1074a $ 2.00 14,167 1210 0.908
FG 1075 $ 2.00 300,000 1220 0.915
FG 1076a $ 2.00 14,000 1110 0.833
FG 1077 $ 2.00 32,083 1000 0.750
FG 1078a $ 2.00 10,900 1110 0.833
FG 1079a $ 2.00 10,200 780 0.585
FG 1080a $ 1.55 9,300 750 0.563
FG 1081a $ 1.95 8,670 933.3 0.700
Total cases - 0 Totals
Productivity Average cases/line hr
% change in cases after
% change in cases per hour after
% change in shifts after (should be close to no change)

Instructions SKU rationalizatio

The goal of this portion of the assignment is to conduct an SKU rationalization to address the capacity issue from the Statement of Facts document in Content/Material for Final Project/Problems in D2L. You will need to conduct an analysis of the Finished Goods Before and determine which if any of the SKUs are candidates to be eliminated. I would sort the data provided by cases from highest to lowest before starting on the rationalization. All the yellow boxes on Finished goods before must be populated. Highlight the SKUs you are considering for elimination in red. On the Finished goods After tab you will adjust the numbers in column G to reflect the increased productivity from the results of your ABC analysis and in column D to reflect the improvement from the ABC and any cases added to replace removal of SKUS. Mark the skus to be removed in red and make the cases 0. All yellow boxes must be populated. Again I would sort by Cases. Totals for Cases and Productivity in Finished Goods After should all be higher than the original numbers. Your findings and conclusions will be summarized in the executive summary.