F$.$ Robert Jacobs

When a tree is sold, the salesperson goes into the field and "tags" the tree for removal from the field and pickup by the customer $($typically multiple trees are included in an order$).$ Tags are colored ribbons that are tied around the tree. A unique color is used for each order. Tagging is a ritual done by the salesperson to ensure that the appropriate quality of tree is selected. Trees that are identified as not saleable are tagged with a special black ribbon and are periodically removed from the field.

The current data for five trees that will be analyzed in the exercise are shown in the following table.

$\backslash$table$[[$Trees$,$Expected Yearly Demand,Std Dev,Quantity For Sale,In$-$Field Quantity$],[$Christmas Palm,,$31,74,440],[$Washingtonia$,165,155,374,4],[$Gumbo Limbo,$159,35,70,0],[$Yellow Poinciana,$49,32,42,290],[$Weeping Podo,$185,68,290,]]$

The Expected Yearly Demand is an estimate of the demand over the next year for the tree. The Std Dev is the standard deviation, a measure of the error, that corresponds to the forecast. For sale and in$-$field quantities are given. The demand forecast and quantities are updated on an ongoing basis as trees are sold and planted on the farm.

Assignment

Your first task is to evaluate the inventory position of each tree. The farm does not keep any backorder information, so the only data you have is For Sale and In$-$Field quantities. Think about For Sale as on$-$hand trees, and In$-$Field as on$-$order trees. Calculate the inventory position using two measures: the actual number of trees and an estimate of the years of supply, for each tree. The current year forecast can be used to estimate years of supply. Answer this question by creating two columns that capture this information.