The scenario is as described in Case 11.1 from the course text on page 362, In this scenario, assume you are the SCM inventory analysis team preparing a business report for your manager. Your manager is not necessarily familiar with all the details; therefore, you should ensure that you present your analysis with all the relevant information to ensure he/she does not have to ask any questions. In the event that any information you require is missing from the case, make an assumption and ensure the assumption is referenced in your report. Whilst there is a theoretical best answer, your report will be marked on the logicality of your solution, as well as any assumptions made to justify your solution. The data table in the case is not to be used you are to use the Excel data file in the assignment folder. Additionally, for the purposes of analysis, assume that the total SKU count for Northcutt Bikes is 10,000.

Expectations

1. Answer the 3 questions at the end of the case study.
2. Your report will define EOQ, ROP, and Safety Stock for both SKUs; furthermore, you will explain the possible inventory savings across the entire inventory (10,000 SKUs). Your analysis should also give the Manager a recommendation on projected warehouse utilization and suggested expansion timelines. Calculate the warehouse capacity reduction based on the new EOQs, assuming there are 10,000 SKUs. You will have to use a growth forecast; perhaps research the growth in the bicycle components industry.Calculate the forecast error metrics for the two