As part of Amazon logistics analytics team, you are tasked with creating a new algorithm that optimizes package deliveries in NYC. Specifically, your goal is to predict how many Amazon's own delivery vehicles (i.e. not UPS/USPS/FedEx) Amazon will need to send to streets of NYC on any given day. Explain which factors you might consider including in your prediction model and why. Suggested options include shipping costs for customers (1day/2day/5day), number of warehouses in the area (affects distance driven by vehicles), pick-up options such as Amazon Lockers in Whole Foods stores, number of deliveries fulfilled by UPS (as opposed to Amazon's own fleet), all kinds of traffic fees (tolls/parking fees/etc.).

As part of Amazon logistics analytics team, you are tasked with creating a new algorithm that optimizes package deliveries in NYC. Specifically, your goal is to predict how many Amazon's own delivery vehicles (i.e. not UPS/USPS/FedEx) Amazon will need to send to streets of NYC on any given day. Explain which factors you might consider including in your prediction model and why. Suggested options include shipping costs for customers (1day/2day/5day), number of warehouses in the area (affects distance driven by vehicles), pick-up options such as Amazon Lockers in Whole Foods stores, number of deliveries fulfilled by UPS (as opposed to Amazon's own fleet), all kinds of traffic fees (tolls/parking fees/etc.).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Tasty Bread Company has monthly demand for one of its products as follows: March= 520; April=490; May=550; June=580; July=600; August=420. Compute the three-month moving average for July.
What problems does overcasting demand create within a supply chain? What problems does under forecasting demand create? What can a company do to resolve the problem of forecasting accuracy? Discuss the impact that current transportation issues may have on supply managers.
Using the information provided below, answer the following questions.INFORMATIONThe data in the table below shows the number of Next-generation Rangers exported to over 100 countries through Durban’s roll-on roll-off (RORO) vehicle terminal during 2022 and the first quarter of 2023. A demand planner wants to compare the relative performance of the weighted moving average method against the simple exponential method in forecasting the volume of export of the next-gen Ranger from the Silverton Assembly Plant.Required:5.1. Using the simple exponential smoothing method (SESM), compute the forecasts for the February 2022 to March 2023 period.Use a smoothing constant of 0.2 and assume a forecast of 7 000 units for January 2022.5.2. Compute the three-month weighted moving average (3MWMA) forecasts for the April 2022 to March 2023 period, using weights of 0.2, 0.3, and 0,5 (oldest data to newest data, respectively).5.3. Using the forecasts calculated for the April 2022 to March 2023 period,…
Marcic Textile Inc. manufactures customized cloth and textile from generic parts. Formed and operated by part-time students Marc and Eric, the company has had steady growth since it started. The company manufactures cloth mostly at night, using part-time students. The company purchases generic threads and fabric in volume at a discount from a variety of sources whenever they see a good deal. Thus, they need a good forecast so that they will know how many fabrics to purchase and stock. For the past 10 months, there had been unstable sales of cloth. During the first month of operations, sales were 890 yards, and there had been a steady growth of 5% per month for the next 3 months. However, after that, sales went down by 10% and continued the declining trend for the next 2 months. On the 7th month, sales were stabilized at 955 yards until the 10thmonth of operations. For every yard of cloth manufactured it needs 2 fiber A, 3 fiber B and 7 fiber C. Forecast for fiber A is based directly on…
What are the advantages of exponential smoothing over the moving average and the weighted moving average?
Forecast accuracy decreases with the long range forecast. True or False? Explain.
The Saki motorcycle dealer in the Minneapolis–St. Paul area wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month. Because the manufacturer is in Japan, it is difficult to send motorcycles back or reorder if the proper number is not ordered a month ahead. From sales records, the dealer has accumulated the following data for the past year: Month Motorcycle Sales January 9 February 7 March 10 April 8 May 7 June 12 July 10 August 11 September 12 October 10 November 14 December 16 a. Compute a 3-month moving average forecast of demand for April through January (of the next year). b. Compute a 5-month moving average forecast for June through January. c. Compare the two forecasts computed in (a) and (b), using MAD. Which one should the dealer use for January of the next year?
Weekly sales of copy paper at Cubicle Suppliers are in the table below. Compute a three- period moving average and a four-period moving average for weeks 5, 6, and 7. Compute each forecast. Which model is more accurate? Forecast week 8 with the more accurate method
Explain why is accurate forecasting so important to companies that use a continuous replenishment inventory system?
Thus historical demand for periods is 70, 60, 80 , and respectivelyWhat is the two-period weighted moving average forecast for period assuming equal weights of 0.5 each