Zenith Wellness Café: Quality Systems and Operational Excellence Foundations
Student’s Name
Institutional Affiliation
Course Name and Code
Professor’s Name
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, Academic Integrity and AI Use Statement
This report is my own work. I have cited all sources, including course materials and case
documents. I used an AI-assisted writing program for drafting and revising. All
interpretations, calculations, and final judgments in this report are solely my own, and I
accept full responsibility for the content given.
, Executive Summary
The three protein bars made by Zenith Wellness are now done on a single line.
Despite the increasing demand, the company has three operational risks: bottleneck line
capacity to process the peak week demand, an ad hoc-based ordering process of protein
blend, and poor management of raw-material. There is also no defined master production
schedule (MPS) and available-to-promise (ATP) technique in the present planning
process which predisposes the chances of failing to meet on-time, in-full (OTIF) targets.
ABC analysis of annual costs on material shows that most of the inventory value
is protein blend and wrapper film which need close monitoring. According to the
estimated demand in bars and 0.030 kilogram protein mix per bar, the annual demand of
protein blend will be approximately 25,300 kg. Assuming a cost of ordering of 120 and a
holding rate of 20 percent of a good that is valued at 7.50/kg, then the economy order
quantity (EDOQ) will be approximately 2,000 kg with a reorder point of 1,150 kg in case
of the requirement of 95 percent service level. This EOQ is approximately four weeks of
supply which coincides with the shelf life of two months.
Process-time statistics indicate that the bottleneck of the process is the cooling
step with a capacity of approximately 470 bars per hour and a weekly capacity of
approximately 18,800 bars per week out of the possible 30,000 bar per week design
capacity. The weekly requirement between weeks 1-4 is 16,875 bars with the efficiency
of more than 90 percent and the design capacity utilization of approximately 56 percent.
The requirement in the next few weeks however is higher than the bottleneck capacity.
Because of this capacity, the MPS of weeks 5-10 cannot meet all of the demand and be
Student’s Name
Institutional Affiliation
Course Name and Code
Professor’s Name
Submission Date
, Academic Integrity and AI Use Statement
This report is my own work. I have cited all sources, including course materials and case
documents. I used an AI-assisted writing program for drafting and revising. All
interpretations, calculations, and final judgments in this report are solely my own, and I
accept full responsibility for the content given.
, Executive Summary
The three protein bars made by Zenith Wellness are now done on a single line.
Despite the increasing demand, the company has three operational risks: bottleneck line
capacity to process the peak week demand, an ad hoc-based ordering process of protein
blend, and poor management of raw-material. There is also no defined master production
schedule (MPS) and available-to-promise (ATP) technique in the present planning
process which predisposes the chances of failing to meet on-time, in-full (OTIF) targets.
ABC analysis of annual costs on material shows that most of the inventory value
is protein blend and wrapper film which need close monitoring. According to the
estimated demand in bars and 0.030 kilogram protein mix per bar, the annual demand of
protein blend will be approximately 25,300 kg. Assuming a cost of ordering of 120 and a
holding rate of 20 percent of a good that is valued at 7.50/kg, then the economy order
quantity (EDOQ) will be approximately 2,000 kg with a reorder point of 1,150 kg in case
of the requirement of 95 percent service level. This EOQ is approximately four weeks of
supply which coincides with the shelf life of two months.
Process-time statistics indicate that the bottleneck of the process is the cooling
step with a capacity of approximately 470 bars per hour and a weekly capacity of
approximately 18,800 bars per week out of the possible 30,000 bar per week design
capacity. The weekly requirement between weeks 1-4 is 16,875 bars with the efficiency
of more than 90 percent and the design capacity utilization of approximately 56 percent.
The requirement in the next few weeks however is higher than the bottleneck capacity.
Because of this capacity, the MPS of weeks 5-10 cannot meet all of the demand and be
