5 alternative warehouse location the company would

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Fundamental Statistics for the Behavioral Sciences
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Chapter 16 / Exercise 16.16
Fundamental Statistics for the Behavioral Sciences
Howell
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Fundamental Statistics for the Behavioral Sciences
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Chapter 16 / Exercise 16.16
Fundamental Statistics for the Behavioral Sciences
Howell
Expert Verified
Alternative Warehouse LocationThe company would also like to assess whether its current warehouse location is appropriate based on where customers are located. It provides you the following information about its key markets, and indicates that its orders in each market are roughly proportional to the total population.MarketPopulationXYLA-Long Beach14,000,00034118San Francisco5,000,00027122San Diego3,000,00033117Sacramento1,800,000391216
Final Project Deliverable to Throx1)You want to impress Axel, so you should develop a summary document of 4-6pages or less (double-spaced, 12-point font, 1” margins) that addresses each of the following questions. There’s no need towrite a “formal” paper. For each question below: 1. Please answer each questionComplete the required calculations and show your resultsin a table. 2. Make a recommendation and/or outline your result. 3. Provide a bullet point discussion on the results, any additional qualitative factors considered in your recommendation and/or risks.Discuss potential issues with the implementation of your recommendations. What changes or resources would be necessary to implement them, and what might create challenges? 2)in a few sentences. All work that supports your answers should be attached in an appendix. The appendix will not count towards your 4 page limit. Also, you may scan and post a separate file with your work if that’s easier.: 3)4)Calculate the measures of annual forecast accuracy for FY 2014 and FY2015 using the MFE, MAD and MAPE. Do these forecasts seem adequate for the purposes of decision making? Why or why not?5)a.) Calculate the what appropriate values of EOQ and ROP would have been for FY2015 based on the FY2015 forecast value.Give your final answer in full sock sets (round to the appropriate wholenumber.) b.)Then, cCalculate what appropriate values for the EOQ and ROP would have been for FY2015based on FY2015 actual demand. Comparing the resultsBased on this difference, indicatewhat the implications were are for inventory management costs in FY2015. See additional tips below:a)Compare the costs for decisions based on the forecast to the actual data b)Use a service level of 95% (z=1.65) when calculating the ROPc)Calculate aAverage weekly demand (´d) (given in summary table-rounded to nearest “5”) by dividing the forecast by 502weeksd)For the variance in weekly demand, use the data provided in the table with the FY2015 forecast for both all approachese)Annual Inventory management costs will include the following: Annual Holding Costs, Annual Ordering Costs, and Purchase Cost.6)Calculate inventory management costs for the company’s current decisions about Order Quantity (Q)EOQand ROP (provided in the case) based upon FY 2015 actual demandin FY2015Compare these to the costs to that would have been achieved if the company had used its forecast forFY2015 to determine calculate more appropriate EOQ and ROP values (what you calculated in Question 2 part b).7)Develop a forecast for FY 2016 using the two forecasting methods currently employed by the company. You will be calculating a simple two period forecast—use 2014 and 2015 annual forecasts/actuals to develop your 2016 forecast. .

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