Background

ABC Electronics is a well$-$established company specializing in the production and distribution of high$-$

quality electronic devices. As the company expands, it faces new challenges in managing its supply chain

efficiently. To ensure seamless operations, the company has identified several key areas that need

thorough analysis and improvement.

Problem Statement

As consultants for ABC Electronics, you are tasked with addressing the following interconnected issues

to enhance the overall supply chain performance.

$$ Statistical Quality Control

$$ Project Management

$$ Transportation Assignments

$$ Forecasting

$$ Inventory Management

$1.$ Statistical Quality Control

To maintain the high quality of its products, ABC Electronics must ensure that its manufacturing process

is under control. You have access to a dataset of $100$ data points representing product measurements.

You can find the data in the Excel file uploaded on Blackboard along with this document.

Task

Construct X$-$bar and R$-$charts to monitor the manufacturing process. Analyze these charts to determine

if the process is in statistical control and identify any out$-$of$-$control points that require investigation.

$2.$ Project Management

ABC Electronics is embarking on an internal project to install a new machine in its manufacturing facility.

As the project manager, your task is to ensure the project is completed on time and within budget. The

list of activities, their predecessors, and the activity times are provided in the Excel file.

Task

Create a project network diagram, perform forward and backward calculations, identify the critical path,

determine the total project duration, and create a Gantt chart to schedule the project activities

effectively.

$3.$ Transportation Assignments

Efficient transportation is vital for timely delivery of products to retailers. ABC Electronics sources

components from multiple suppliers and distributes finished products to various retailers. The

transportation cost for each unit, retailers demand, and suppliers capacity are provided in the Excel file.

Task

Develop an optimal transportation plan to minimize costs while ensuring timely delivery. Consider

different suppliers and retailers, and use appropriate optimization techniques to find the best solution.

MGMT$-233-1,$ Fall $24$ Due Date: Friday, $10/11/2024$ Course Project

$4.$ Forecasting

ABC Electronics is planning its production and inventory management for the upcoming year. Reliable

demand forecasting is crucial for ensuring product availability and minimizing costs. You are provided

with historical sales data for the past $24$ months in the Excel file, which includes monthly sales figures

for various products.

Task

Use moving average method with $3$ and $5$ periods, exponential smoothing method when alpha is $0\mathrm{.}3$ and

$0\mathrm{.}8.$ Also, develop a demand forecasting model using regression analysis to predict sales $($fit a trend line

in Excel and provide the fitted equation and R$-$squared measure$).$ Then, Calculate MAD and MAPD for all

five forecasting models you have developed and report what method is the most accurate. Explain if the

moving average and exponential smoothing are good methods for this type of demand behavior.

$5.$ Inventory Management

As the newly appointed inventory manager, you need to develop an inventory policy that ensures

product availability at a $90\%$ service level. Their product needs an item that they must to order it from a

supplier. The lead time for replenishing stock is $15$ days, and historical demand data for the part is

provided in the Excel file.

Task

Determine the reorder point and safety stock required to achieve the desired service level. This will

involve analyzing the demand variability and lead time to set appropriate inventory levels. The company

is wondering what the service level is if they keep $100$ items as safety stock.