Forecasting: Forecast the demand for the three fuel types based on the

historical data to analyze and develop future business plans. Which

technique according to you is most suitable? Compute the errors and

report the accuracy of the forecasts.

$2.$ Inventory:

$($a$)$ Compute the reorder point and order quantity for an EOQ based

inventory policy, base stock level, and periodicity for each product

$($diesel$,$ petrol, and HSP$)$ separately. Discuss the complications in

applying these rules. Here are some pointers that can help you in

your analysis:

i$.$ What is replenishment lead time

ii$.$ length of planning horizon

iii. What are the service level requirements?

iv$.$ What is the customer demand.

v$.$ How do you compute the reorder point for each of the three

products separately?

vi$.$ What are the costs involved?$-$ break it down component wise

vii. Compute the reorder point and order quantity for both continuous review and periodic review policies.

$($b$)$ Which inventory policy would be most suitable for this scenario?