IEN 465 Production and Inventory Control Technical Report (Due date: 12/22/2017, 5:00 PM)
The due date of the final report is 12/22/2017, 5:00 PM. You can send me via email.
Technical Report
Steps:
* Suppose that you are a manager of the logistics/demand management team at Publix.
explain them. You can use graphs to show such data patterns and features.
should be clearly explained.
quantity, optimal cycle time, etc.) under any assumption you make. Clearly explain all the procedures including model(s), assumption(s), processes, and final results.
Section structure:
* You can add any extra section if you want.
Data analysis – Daily/Weekly/Monthly Demand
Example) Monthly demand
1000 900 800 700 600 500 400 300 200 100 0
Month |
Year 1 |
Year 2 |
1 |
740 |
270 |
2 |
404 |
280 |
3 |
454 |
392 |
4 |
438 |
354 |
5 |
510 |
596 |
6 |
940 |
726 |
7 |
782 |
674 |
8 |
532 |
490 |
9 |
442 |
404 |
10 |
606 |
710 |
11 |
546 |
438 |
12 |
388 |
392 |
1 2 3 4 5 6 7 8 9 10 11 12
Seasonality?
Trend?
Clearly explain any data pattern(s) observed from the selected dataset.
1000 900 800 700 600 500 400 300 200 100 0
Predict sales volume of the selected item next year.
?
Forecasting
1 2 3 4 5 6 7 8 9 10 11 12
Forecasting (cont.)
What is the adequate forecasting method based on data patterns/features observed from the selected dataset?
Required information:
– Daily/weekly/monthly demand
– Demand patterns
Decision:
Simple moving average
Weighted moving average Exponential smoothing Holt’s method
Seasonal decomposition Winter’s method
Output:
Future demand (weekly or monthly)
Inventory Model
Now you can establish weekly (or monthly) inventory policy in terms of (i) order quantity, (ii) cycle time, (iii) reorder level, etc.
Required information:
– Demand of selected item is estimated by the forecasting result. – All cost factors for each item are given in the Excel file.
Decision:
– Stochastic model – continuous/discrete models, lead time/stock shortage/lost sales, etc. – Deterministic model – EOQ with lead time/stock shortage/lost sales, etc.
Output:
– Optimal order quantity
– Optimal order cycle time – Optimal reorder level
Grading Criteria
Clearly explain all procedures and results. All your explanations should be numerically supported.
Remember these are not just homework questions; you need to make a report that would be used for persuading management executives to change inventory policy.