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Assignment: Managing the Supply Chain (Operations and Inventory)




Question;Assignment: Managing;the Supply Chain (Operations and Inventory) Details: Operations;Simulation... Inventory Management, Forecasting and Process Information.;Complete with TeammateReport: Word Document;and/or Excel (Attached in the assignment area)Format: None...;Student Submission Should Look Professional and Answer the Questions BelowLength: No Requirement... Requirement is to Answer all the Questions in the Assignment__________________________________________________________Your need to evaluate;data and make recommendations and decisions shown below..Excel Spreadsheet;ExplanationWhat you have is an;Excel spreadsheet with 6 models we assembly at our facility. Giving more;description, here are the details of the Excel file.Sheet "A"...;picture and bill of material of Model ASheet "C"... picture and bill of material of Model CSheet "Annual;Customer Requirements"... past 12 months of actual demand from our;customers.Sheet;Inventory"... actual on hand quantities of models A and C.Assignment is broken;up into 3 sections:1) Inventory;Management... the Materials;department has not been doing their job. Inventory levels have not been managed;for over a year. Assembly outages have caused the group to just order "a;lot" of parts to make sure the build goes as schedule. Major opportunity;for cost saving in inventory. Calculate the annual demand for each component;of Models A and C Calculate the EOQ for each component of Models;A and C Adjust inventory levels as compared to current;on-hand quantities of each component Calculate inventory costs saving based on your;EOQ calculationsHints and Tips for Section 1 You will need to research EOQ and make;assumptions for some of the components of the equation. Make sure you add a buffer... don't go with;the actual EOQ number Don't forget the inventory holding costs in;you saving calculations I would use the spreadsheet to assist with the;EOQ calculations... will save much time 2) Forecasting... using the spreadsheet data, graph the forecast for Model A;Model C and all the models I want to see the visibility for the next 3;months on the graph, with a trend line. What are you going to do with one specific;datapoint (Model A - September) in your calculationsHints and Tips for Section 2 You will need to research forecasting You will *probably* use a different;forecasting technique for the individual forecasting of Model A and Model C;than you use for all the models together3) Process Documentation... using the picture of Model A and Model CComplete;a process drawing for the operator to assembly this product.Hints and Tips for Section 3 Don't go crazy here... just complete a;diagram where the model can be assembly correctly. Less words the better;NOTES-Lesson One EOQThe;often asked questions... how much to order and when to order?.EOC;- Economic Order Quantity is a great tool to assist with this. The link below;describes the components of the equation.;when using this equation from experience. First you have to make some;assumptions. Cost of placing an order... basically, how much does it cost the;company to call the supplier, get a quotation, fill out a purchase requisition;get it signed, and place the order. Technology has improved this activity...;but there is still a cost associated. A second assumption is a holding cost of;the inventory. Industry guidelines estimate there is a 2% to 15% of the price;of the good to hold it in storage.You will have to make an estimate and justification of each of;these for your case study..WARNING... don't go cutting your inventory levels. This equation works under ideal;environments... and we all know that never happens. For supplies with long;lead times you need to order more frequent. For equipment with historical;problems or downtime, or tooling that breaks a lot order more frequent. For;troublesome and new supplier that do not have a documented performance history;you need to order more frequent..My major project while working on my MBA was;with EOQ. My company did a very bad job of managing supplies and inventory and;enabled me to look like a guru. After super conservative estimates, I took the top;25 tools and top 25 raw materials and applied EOQ to my companies' inventory. I;was able to turn in an annual cost savings of $430K! SWEET!;NOTES-Lesson 2 Forecasting TutorialGood;luck with the forecasting section of this assignment... how is that for;support and encouragement. Lets start with the bad of forecasting. Think of the;weather... although technology has vastly improved forecasting it is still;inaccurate often. Think of the stock market, if I could "half-way;predict the movement of the market or a stock, I would not be sitting here...;I would own an island somewhere and be retired. In both cases there are too;many unknowns to predict the outcomes. Here is a final thought on forecasting: ?;Forecasts are usually wrong. (Do not;treat as known information!).?;Forecasts must include analysis of;their potential errors.?;The longer the forecast horizon, the;less accurate the forecast will generally be.?;Benefits can often be obtained from;transforming a forecasted quantity into a known quantity (when this can be;done, it comes at a cost however).?;Systems that are agile in responding to;change are less dependent on accuracy in forecasts.So lets move onto the good of;forecasting... in the right environment, it can be a great tool used by;managers and those responsible for strategic planning. To simplify, most books;state there are 2 types of forecasting with different techniques in each. I;would do some brief research for this part of the assignment. Each technique;has its own pros and cons...your forecasting for this part;of the assignment can be more accurate with the techniques highlighted in red.Read up and select;the proper technique.Qualitative Forecasting [HINT...;you will not be using any of these methods]?;Jury of Executive Opinion (I think that is;like "the boss said so")?;Delphi Method?;Composite of Sales Force?;Consumer SurveyQuantitative Forecasting?;Time Series - Simple Moving;Average?;Time Series - Weighted Moving;Average?;Time Series - Exponential Smoothing?;Linear Trend - Simple;Regression?;Linear Trend - Multiple Regression?;Nonlinear Trend Analysis (way beyond;the scope of this course)?;NOTES Lesson 3 Process DocumentationNothing;fancy here... take the picture and create an assembly drawing..Experience;here tells me you need pictures, drawing, and diagrams to have a great end;product. Get creative with this one. Take a look at documentation around your;work place and in fast food restaurants... they are (should be) simple..If you have any questions or are confused with;this part of the assignment... call or email me.;="msonormal">


Paper#45653 | Written in 18-Jul-2015

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