Paper

Sales Forecast Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Quantity |   | 200 |   | 200 |   | 200 |   | 200 |   | 200 |   | 200 | Standard Fans |   |   |   |   |   |   |   |   |   |   |   |   | Custom Fans |   |   |   | 100 |   |   |   | 100 |   |   |   |   | Standard Gross Requirements |   |   |   | 400 |   |   |   | 400 |   |   |   | 1200 | Custom Gross Requirements |   |   |   | 100 |   |   |   | 100 |   |   |   | 300 | Schedule receipts |   |   |   |   |   |   |   |   |   |   |   |   | Projected on hand - Custom |   |   |   |   |   |   |   | 200 |   |   |   |   | Net Requirements |   | 200 |   | 350 |   | 200 |   | 350 |   | 200 |   | 1500 | Planned-order receipts |   |   |   |   |   |   |   |   |   |   |   |   | Planned-order releases |   |   |   |   |   |   |   |   |   |   |   | 1500 | Looking at the product chart we are forecasting a total of 1500 fans to be completed in a 12 week cycle. Out of the 1500 fans there will be 1200 standard and 300 custom fans. We plan on having 200 standard fans completed every 2 weeks and 100 custom fans completed every 4 weeks. The variance in production times is due to that fact that custom fans need longer time in the design and creation process. Looking at the design and creation process we have forecasted the polymer lead time to be 1 week and the motor to be 4 weeks. With our idea of outsourcing our standard fans to India to increase our overall profit margins we have found that outsourcing we stand to see a gain of 8 points going from 17% profit to 25% profit making it an overall 45% gain in our profit margins. Our new partner plant has also agreed to drop ship our standard fans to our customers so we do not have to pay for the shipping back to our plant then ship out to our customers. Moving our standard fans out to India allows us to concentrate on the product that makes us the most profit, out custom fans. In addition, we have forecasted with the outsourcing that out overall profit margin in our custom fans will increase from 17.5% to 30% thus seeing a gain of 12.5 points and increasing our custom profit to 71%. So, in all moving construction of our standard fans to India has increased our overall profits to an outstanding increase of 116%.