problem1) describe the supply chain involved in making the bottle of Coke which you have just picked up from your neighbourhood retail store.
problem2) How do transport companies benefit from technology like Global Positioning System (GPS)? With the help of GPS, could transport companies track their trucks on real time basis.
problem3) Given the information below, what are the EOQ and reorder point?
Annual Demand = 1,000 units
Days per year considered in average daily demand = 365
Cost to place an order = Rs. 10
Holding cost per unit per year = Rs. 2.50
Lead time = 7 days
Cost per unit = Rs. 15
problem4) Assume a retail company’s new annual report claims their costs of goods sold for the year is Rs. 160 million and their total average inventory (production materials + work in-process) is worth Rs. 35 million. This company generally has an inventory turnover ratio of 10. What is this year’s Inventory Turnover ratio? What does it mean?
Consider the monthly demand for a company XYZ Ltd.
Sales 2006 2007 2008
January 2000 5000 5000
February 5000 4000 2000
March 5000 4000 3000
April 3000 2000 2000
May 4000 5000 7000
June 6000 7000 6000
July 7000 10000 8000
August 10000 14000 10000
September 15000 16000 20000
October 15000 16000 20000
November 18000 20000 22000
December 8000 12000 8000
problem5) Use 6-month, 12 month moving average, exponential smoothing with coefficient with alpha of 0.1, 0.2 to derive forecast for 2009 Jan to December. For each of the method compute the MAD and Bias and discuss which among these models will be suitable for forecasting the demand.