1) Calculate measures of forecast accuracy: MFE, MAD and MAPE using the data from FY2019 and FY2020. Which forecast is more accurate? Do these forecasts seem adequate for the purposes of decision making? Why or why not?
Note unlike your homework/tests where we utilized multiple months this is just for the two years(treat them like months)
2) Develop a forecast for FY2021 using the two forecasting methods currently employed by the company. Comment on which of the forecasts is likely to be more appropriate to support decisions based on your assessment of forecast accuracy from Q1. Are there any other considerations that you would recommend to Throx.
3) This question will have you calculating 2 different EOQ and ROP values and interpreting the results. For both EOQ and ROP, give your final answer in full sock sets (ROUND UP to the next whole number). The specific questions to answer are based in parts a-c. Tips to solve the EOQ and ROP are given below in bullet points.
Calculate EOQ and ROP for FY2020 based on the FY2020 forecast value that you recommended in Question #1.
b) Calculate the EOQ and ROP based upon actual demand for FY2020
c) Use the EOQ results from above and the Q that Throx is currently using (given in the case) and determine total inventory costs using 2020 actuals for your Demand
(D). i. Compare the total inventory costs from the three results and analyze what it shows you.
ii. What if any are the implications of the ROP based on the forecast and Throx current ROP vesus the ROP determined using Actual Demand.
4) Indicate which of the three suppliers should be used for FY2021. Develop a supplier scorecard using the following scale: 3=best, 2=second best, 1=worst and the weights provided in the case to support your selection. Remember for your quality rating you must first determine the Capability Index (show your results) for each supplier.
5) Indicate which transportation mode should be used for FY2021. You must complete analysis of the transportation costs. When supporting your recommendation, be sure to discuss other implications (such as inventory levels, safety stock, cost etc) to support your decision.
6) Calculate EOQ and ROP values for FY2021 based on your forecast from Question 2 and recommendations for their sock supplier and transportation company from Question 4 & 5 (TIP: The selected supplier may change your S and P values.) Give your final answer in full sock sets (ROUND UP to the next whole number). What are the expected costs for inventory management based on your decisions? How does this compare to company's current policy results from their current Q & ROP?
7) Indicate an appropriate location for a new facility if one is to be built using the weighted center of gravity approach. Round your final coordinates (X, Y) to two decimal places. Discuss other relevant factors that would influence the choice of a specific location once the (X,Y) coordinates have been identified.
8) Discuss potential issues with the implementation of your recommendations. What changes or resources would be necessary to implement them, and what decisions might create challenges and require additional leadership attention? Write few sentences on each recommendation.
Final Project Assignment inform X Homework Help - Q&A from Or x Course Hero X C 1) Calculate Measures Of Forec X + C Apsu.instructure.com/courses/2140351/assignments/12932661?return_to=https%3A%2F%2Fpsu.instructure.com%2Fcalendar%23vie... [ * S Update Final_Summer 2021_SCM301_b.docx Download @ Info X Close Page 1 > of 6 ZOOM + K7 Final Project Assignment SCM 301 Overview of the Case Analysis We have discussed many concepts in SCM 301 related to planning, sourcing, making and delivering products and services. The purpose of this case analysis is to integrate the different elements of the course and to apply tools you have learned evaluate the supply chain performance. Consider yourself a summer intern and your summer assignment is to put all you learned in SCM 301 to good use helping the Throx company evaluate their current supply chain practices. You are tasked with evaluating the company's recent performance and recommending changes (decisions) to improve supply chain management performance. The questions that you are required to answer are attached to the end of this case. Company Background Information Throx sells higher-end custom-design socks in three-sock sets (rather than two). The company operates from a small packaging and distribution facility in Richmond, CA from which it ships product to customers. Given the company's location and focus, 97% of sales are in California, primarily in the major urban areas of the San Francisco bay area, Los Angeles, Sacramento (and last but not least) San Diego. The company sells exclusively via online sales, at an average price of $18/three-sock set, plus shipping costs charged to the customer. The company currently orders its product from the Chinese sock manufacturer Zhejiang Datang Hosiery Group Co., Ltd in so-called "Sock City." Socks are shipped via truck to the port of Shanghai, from where they are shipped to the port at Los Angeles-Long Beach via ocean freight. Once offloaded in Los Angeles-Long Beach, the socks are shipped via truck to the Richmond facility. On average, shipment from the manufacturer to the Richmond facility takes 4 weeks. In addition to the transit time required for shipment, the lead time from when an order is placed with the manufacturer to when it is shipped from Zhejiang is 3 weeks. So, the total lead time is considered to be 7 weeks from when Throx places an order until it reaches the Richmond facility. Historically, the standard deviation of lead time has been I week. Final_Summer 2...docx Show All XFinal Project Assignment inform X Homework Help - Q&A from Or x Course Hero X C 1) Calculate Measures Of Forec X + C Apsu.instructure.com/courses/2140351/assignments/12932661?return_to=https%3A%2F%2Fpsu.instructure.com%2Fcalendar%23vie... [ * S Update Final_Summer 2021_SCM301_b.docx Download @ Info X Close Page 2 of 6 ZOOM + K7 Product Orders (Demand) Information The company provides you with the following information for the past two fiscal years: Demand Characteristic 2019 2020 Annual Demand, sets 26,000 29,500 Average Weekly Demand 500 567 Variance of weekly Demand 125 142 Product Forecasting Information Throx uses two main forecasting methods based on annual data to predict orders for the following year, a weighted moving average and exponential smoothing. They provide you with the following information about forecasts for FY 2017 through FY2020: Actual Demand Weighted Moving Exponential Forecast (Three Sock Sets) Average Fest 2017 19,000 14,500 15,000 2018 22,500 17,750 18,600 2019 26,000 21,450 22,1 10 2020 29,500 24,950 25,611 Weighted Moving Average uses W, = 0.7 and W,1=0.3. Exponential Smoothing uses a = 0.9. Final_Summer 2...docx Show All XFinal Project Assignment inform X Homework Help - Q&A from Or x Course Hero X C 1) Calculate Measures Of Forec X + C Apsu.instructure.com/courses/2140351/assignments/12932661?return_to=https%3A%2F%2Fpsu.instructure.com%2Fcalendar%23vie... [ * S Update Final_Summer 2021_SCM301_b.docx Download @ Info X Close Page 3 of 6 ZOOM + K7 Inventory Management Information The initial inventory for all sock styles combined at the beginning of FY 2021 is 2,250 units. You also have information on current costs, which includes: Order cost to Throx for an order placed with its current supplier, S/order = $ = $250 Holding cost per set per per year = H = $1.50 The company currently pays $6.50 for each set of socks. = P The company uses a continuous review replenishment policy, and has IT systems in place that allow constant monitoring of key information. Last year, the company used an ROP under this policy of 1,800 units for all sock styles and an order quantity Q of 4,000 units for all sock styles. Potential Alternatives to Current Supply Chain Management The company has asked you to evaluate a number of alternatives to their current SCM practices, including at a minimum their choice of supplier, transportation modes, warehouse capacity, order quantities and safety stock. Alternative Suppliers The company has contacted potential alternative suppliers in China, who have offered the following information relative to the current supplier: Supplier Characteristic Current Alternative A Alternative B Supplier Characteristic Weight Unit Price, $/3-sock set 6.50 $ 5.75 5.00 Unit Price, $/3-sock set 0.4 Order cost, S/order 250.00 325.00 $ 200.00 Order cost, S/order DA CPK TBD TED TED Defect Rate 0.3 Financial condition of the firm Good Poor Fair Financial condition of the firm 0.2 For the quality performance assessment of the suppliers, Throx would like you determine the Capability Index for each Supplier based on the following information. Target Sock Thickness: 6mm +/- 1mm Measures in mm Current Alternative A |Alternative B Mean Sock Thickness 5.7 6.2 Standard Deviation 0.2 0.2 0.2 Final_Summer 2...docx Show All XFinal Project Assignment inforn x Homework Help - Q&A from Or x Course Hero X C 1) Calculate Measures Of Forec X + C Apsu.instructure.com/courses/2140351/assignments/12932661?return_to=https%3A%2F%2Fpsu.instructure.com%2Fcalendar%23vie... [ * S Update Final_Summer 2021_SCM301_b.docx & Download @ Info X Close Page
