1. How would you characterize Jane’s current approach to
forecasting? Is it an appropriate method of at least
forecasting filled demand? What were the forecast
errors she was obtaining with this method?
2. What method would you suggest the plant use for
forecasting Grade 17? Try fitting the data for several
methods and see which works best. What data should
they use? Should they use the same method for the
other products?
3. Take a look at PaperStuff’s inventory policy. Ideally, the
company would like to hold one month of safety stock.
Calculate their inventory in the data provided. (hint:
you can assume that beginning inventory is exactly
safety stock, unless they stocked out in the first month).
Can you come up with a revised inventory strategy? If
so, how would you quantify the improvements?
4. What policies or procedures would you change in order
to improve the situation with Grade 17? Should these
same procedures be in place for the other products?
5. Any thoughts as to what is going on with Grade 44?
What changes in policies or procedures might help?