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DistCo, a large warehouse service company in the San Francisco Bay Area, stores pharmaceutical products for customers while they are in transit to local retailers.
DistCo, a large warehouse service company in the San Francisco Bay Area, stores pharmaceutical products for customers while they are in transit to local retailers. DistCo can store a maximum of 294,000 cases of products at its present facility. Because their business has been growing, the companys management wonders if they should acquire other warehouses in 2019. The materials specialist has accumulated historical inventory data for 2014-2018 presented in HW4_dataset.xlsx.
- Utilize Excel to identify the best forecast based on MAD and MAPE. Create a table with forecasting results . Apply the best forecast to estimate inventory in 4 quarters of 2019.
- Answer the question of the case study: should DistCo acquire more warehouse capacity in 2019 (Hint: will the forecasted number of cases in the 4th quarter of 2019 be close to or greater than 290,000cases)?
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