Here's a Soccer Supply chain problem regarding forecasting that i framed for my college tech fest. The event goes by the name Induschron; involving a four stage of problems on Industrial engineering.
Cover, lining and bladder are important components that are used to manufacture football. A firm called “Fevernova”, which sells its football through a chain of retailer’s across India, requires estimating the necessary amount of components, needed in the coming year (quarterly) to meet the demand. One piece each of cover and bladder with two piece of lining is required to make one football.
The daily demand data of football in the previous year is provided in the following Graph. Click on the picture to enlarge the view.
Fevernova currently purchases Cover, Lining and bladder from Wish-Aish Corp., Tall Winder Corp. and Ab-Shake Chop Ray Corp. Wish-Aish ships each order in 6 days, Tall Winder ships each order in 4 days and Ab-Shake ships it in 8 days on receiving respectively. Demand of football is normally distributed and is independent from one day to the next. Fevernova carries a safety inventory regarding standard demand deviation for each of the component; which is 12% of the expected daily demand of football in a particular period with a desired service level of 95%. The review period for inventories in each quarter is set to be four weeks for the replenishment of the inventory.
1) Evaluate the daily demand of cover, lining and bladder required to meet the expected demand in the four quarters of the coming year.
2) Do the error analysis on your proposed forecasting model by evaluating Absolute Deviation (AD), Mean Absolute Deviation (MAD), and Mean Absolute Percentage Error (MAPE).
3) State whether your forecast in overall is under forecasting or over forecasting.
4) Follow periodic inventory system and specify the buffer stock of all the components for all the quarters.
For the solution drop your comments with your email. Download all the stages of the problem from here
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