Analyze inventory management issues, controls, practices, costs, and data to contribute to decision-making for the strategic and

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Question:

Analyze inventory management issues, controls, practices, costs, and data to contribute to decision-making for the strategic and competitive advantage for the business individually and/or in a group.

Evaluate the relationship between stock levels and customer service alongside competitive advantages for businesses

Assignment Tasks:

Northcutt Bikes: The forecasting Problem

Jan Northcutt, the owner of Northcutt Bikes, started the business in 1995. The following shows the monthly demand for one major product line: the standard 26-inch 10-speed street bike. Although it is only one of Jan’s products, it is representative of most of the major product lines currently being produced by Northcutt Bikes. If Jan can find a way to use this data to understand her demand more constructively, she feels she can probably use the same methodologies to project demand for other major product families. Such knowledge can allow her to plan more effectively and continue to be responsive while still controlling costs.

Assignment

1. Plot the data and describe what you see.

2. Justify how would you use this information to develop a forecast.

3. Use two different methodologies to develop as accurate a forecast as possible for the demand. Use each of those methods to project the next 12 months’ demand (Jan 2022 to Dec 2022).

4. Compare the two chosen methods and justify which is better.

5. Discuss the advantages and disadvantages of having too much stock.