Case Questions

Using the Product Forecasting Information that has been provided from FY$2020$ through FY$2023($four years$),$ calculate the measures of forecast accuracy $($MFE$,$ MAD, and MAPE$)$ for the Weighted Moving Average $($MA$)$ and the Exponential Smoothing $($EXP$)$ approaches to forecasting.

a$)$ What are the values of MFE, MAD, and MAPE for each of these two approaches to forecasting $($MA and EXP$)?$ Which of the approaches is more accurate?

b$)$ Do these forecasts seem adequate for the purposes of decision making? Why or why not?

Note: Unlike your homework$/$exams where we utilized multiple months, this is just for the four years $($treat them like months$).$

Develop forecasts for FY$2024$ using the two forecasting methods currently employed by Throx.

a$)$ What are the forecast values that you calculated for each? Please be sure to show work.

b$)$ What forecast do you recommend using? Please provide your rationale.

The information relating to Current and Alternative Transportation will be used to analyze the choice between using Maersk $($Ocean Freight$)$ and UPS $($AirExpress$).$

a$)$ What are the annual transportation$-$related costs for each of these options?

b$)$ What are some other factors and$/$or costs$($such as impact to inventory levels, safety stock, and the resulting costs$)$ that may be helpful to consider when trying to support$/$justify your recommendation?

c$)$ Based on your analysis, which option would you recommend, supporting your answer with quantifiable factors where possible.

Based on your recommendations from the previous questions: Forecast, Supplier, and Transportation. Note this may change some of the costs and$/$or leadtime

a$)$ Determine your $2024$EOQ

b$)$ Determine your $2024$ ROP

c$)$ What are the expected annual costs for inventory management. The types of costs to be included are annual holding costs, annual ordering costs, and annual purchasing costs.

d$)$ What are the primary cost drivers between these results and the results your determined in question $3.$

Using the Warehouse Location Information that has been provided, use the weighted center of gravity approach to determine the appropriate location for a new facility if one is to be built.