Now it is time to apply what we have learned to our Supply Chain. Below is a graphic of this assignment. It will be completed in four $(4)$ parts.

Screenshot $2023-02-11$ at $12\mathrm{.}27\mathrm{.}09$ PM$.$png

Part $1-$ Forecasting Your Future Demand

For this Part $1$ and Part $2$ of this assignment, please use the Excel spreadsheet below.

Use three forecasting techniques and graph Model A and Model C using $-$ linear regression, $3-$month moving average and smoothing. Using the forecast graphs, list what the demand will be in three months for each forecasting technique.

What should you do with September's value for Model A$?$

Deliverable for this Section:

Two graphs of Model A and Model C showing the three forecasting methods.

For $3$ months into the future, list the projected inventory projections for Model A and Model C

MG $620-$ Case $3$ Inventory $-$ S$23.$xlsxDownload MG $620-$ Case $3$ Inventory $-$ S$23.$xlsx

Part $2-$ Inventory Management

The Purchasing $/$ Materials Department have not been doing their job. Inventory levels have not been managed. Assembly outages have caused the group to just order "large quantities" of raw materials to make sure the build is not disrupted. There appears to be a major opportunity for cost saving by reducing our inventory and using our EOQ Model we introduced last week.

Calculate the annual demand for each component of Model A and Model C

Calculate the EOQ for each component of Model A and Model C

Different from last week, the cost for the Legos $...1$ x $1$ piece $=$ $$0\mathrm{.}12$

Adjust inventory levels as compared to current on$-$hand quantities of each component

Calculate inventory costs saving based on your EOQ calculation

Deliverable for this Section:

Summary demand for Model A and Model C of annual demand

Table showing your EOQ calculations for each Lego component of Model A and Model C

Table showing savings $...$ comparing current inventory with proposed $($EOQ calculated inventory$).$ Note there are at least three areas of savings: material savings, holding savings, and ordering savings.