Lynn University Florida Supply Chain and PK Village Store Case Study

User Generated

Oboolo223

Business Finance

Lynn University Florida

Description

Workable excel spreadsheet to include changinging values to auto populate

PK Village Stores - Case Study

PK Village is a neighborhood 24-hour convenience store chain. The outlets, located in gas stations throughout South Florida offer over 10 thousand SKU (store keeping units), including limited selections of dairy products, packaged foods, over-the-counter medications, basic apparel, electronic accessories, hardware, tools, and automotive products.

The first store opened in 2002 and it is managed by Sammy Patel, one of its owners. The company now operates a network of 12 stores spread throughout Miami-Dade, Broward and Palm Beach counties. The partners are considering opening other branches in other parts of the state and eventually expand nationwide through franchises after 2020.

One of the products sold by PK Village is a general use lubricant sourced from a factory in Malaysia and packed under the PK Village private label.

Ms. Patel has noticed that, over the past year, the company has experienced frequent shortages of this SKU, resulting in lost sales as well as periods of excess inventory.

Ami places orders for this product every month and is considering implementing a routine methodology to estimate future demand for this product.

The demand for this SKU during the past five years is shown in the table below:

Month20142015201620172018
Jan211244291323328
Feb338403386478510
Mar191213335327310
Apr192244278327346
May138153159211261
Jun148195209342296
Jul205231205288394
Aug244327364374331
Sep164337263304305
Oct200247280337300
Nov205234282304322
Dec229438273357369

Ms. Patel has retained your services to recommend a forecasting methodology to estimate the demand of generic lubricant. Your document should contain:

  1. A forecasting error comparison of these methodologies:
    • Two-period moving average
    • Three-period moving average
    • Single Exponential Smoothing with constants of 0.4 and 0.3
  2. A summary of your recommended next steps.

Include the Excel file showing all calculations.

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Explanation & Answer

Please see the answer attached below and let me know in case you have a question or concern. Thank you so much

Two-period moving
average

year

Month

2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2017
2017
2017
2017
2017
2017
2017

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul

Absolute
deviation

Actual demand forecasted demand
211
338
191
192
138
148
205
244
164
200
205
229
244
403
213
244
153
195
231
327
337
247
234
438
291
386
335
278
159
209
205
364
263
280
282
273
323
478
327
327
211
342
288

274.5
264.5
191.5
165
143
176.5
224.5
204
182
202.5
217
236.5
323.5
308
228.5
198.5
174
213
279
332
292
240.5
336
364.5
338.5
360.5
306.5
218.5
184
207
284.5
313.5
271.5
281...


Anonymous
Really useful study material!

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