Case Questions 1) Calculate measures of forecast accuracy: MFE, MAD and MAPE using the data from FY2017 through FY2020. a) Which forecast is more accurate? b) 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 four 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. a) Calculate EOQ and ROP for FY2020 based on the FY2020 forecast value that you determined to be most accurate in Question #1. b) Calculate the EOQ and ROP based upon actual demand for FY2020 c) Use the total inventory cost calculation to determine total inventory costs for each of the three EOQ results: EOQ from part a, EOQ from part b, and the Q that Throx is currently using (given in the case) When determining the costs use 2020 actuals for your Demand (D) for all three scenarios. i. Compare the total inventory costs from the three results and analyze what it shows you.

6 ii. What are the implications of the ROP Throx is currently using versus the ROP based on Actual Demand. . See additional tips below: Use a service level of 95% (z=1.65) when calculating the ROP For the standard deviation of weekly demand, use the data provided in the table on page 2 of the case with the FY2020 forecast for all approaches. Annual Inventory management costs will include the following: Annual Holding Costs, Annual Ordering Costs, and Purchase Cost. 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. Are there any concerns Throx should consider with your selection? a) Remember for your quality rating you must first determine the Capability Index (CPk) for each supplier. Remember show your CPk results 5) Indicate which transportation mode should be used for FY2021. a) You must do an analysis of the annual transportation costs. b) When supporting your recommendation, be sure to discuss other implications (such as inventory levels, safety stock, and the resulting costs) to support/justify your recommendation. 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 for Q & ROP if they maintain that approach for the 2021 business plan? 7) Determine the 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 considerations and potential issues with the implementation for each of your recommendations: 2021 forecast, EOQ &ROP, Supplier, Transportation , and Location What changes or resources would be necessary to implement them, and what decisions might create challenges and require additional leadership attention? Make a few sentences on each recommendation.