APNHO Historical Daily Demand for A Product Worksheet Every item you sell has an historical demand. Find the attached historical demand assignment and comp

APNHO Historical Daily Demand for A Product Worksheet Every item you sell has an historical demand. Find the attached historical demand assignment and complete it in excel. Historical daily demand for a product you sell is given below (columns B,C). It costs your firm $5 per unit to store the produ
and $100 everytime you place an order to purchase the product. After you place an order to the supplier, it takes 3 days fo
(the day you place the order is day 1, you will receive the product on day 4). Your firm has set a service level of 99%.
Q1: Use the historical data to forecast daily demand for the next 30 days. Hint: You will need to pick a forecast method, th
forecast the future. Use the historical data to help determine which forecasting method is most appropriate.
Q2: What is the total demand over the next 30 days? What is the average daily demand? What is the standard deviation of
Q3: What is the economic order quantity?
Q4: How many orders should you place over the next 30 days?
Q5: What is the reorder point?
Bonus: Complete the inventory and order management chart
Hints:
-You will need to pick a forecast method, then use it to forecast the future. Use the historical data to help determine which
method is most appropriate. (Plotting it out is always a great first step!). If you don’t get the forecast correct, you won’t be
the remaining questions.
-Capital D is typically used for annual demand. To keep things simple, this example is only looking 30 days out. You can still
a subsititue for 30 days.
-Decisions for ordering or not ordering more inventory from your supplier is based on ending inventory.
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Daily Demand
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
0
0
14
0
5
0
0
2
Q1:
Day
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
Demand
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
0
5
6
0
41
0
3
3
0
4
15
0
5
6
8
31
0
6
8
1
10
2
5
16
15
12
7
11
3
16
4
8
18
2
11
3
4
10
20
2
5
4
29
2
10
4
1
315
316
317
318
319
320
321
322
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
13
4
26
7
12
2
17
3
26
17
2
9
20
45
11
10
4
11
26
7
15
6
18
27
20
6
7
6
24
7
4
31
24
9
16
13
54
13
40
5
4
10
34
9
10
23
41
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
11
4
14
11
39
5
18
37
18
16
19
19
38
39
10
17
10
11
49
40
25
10
19
21
29
17
29
32
8
24
31
26
33
33
39
29
27
52
19
27
19
12
39
5
37
62
7
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
24
46
39
62
23
19
30
16
36
16
43
19
29
37
32
16
47
14
26
27
25
34
29
35
27
97
45
15
9
33
29
45
25
22
40
16
21
26
46
26
40
32
15
42
25
17
40
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
89
35
18
31
17
31
12
19
29
26
78
24
42
23
12
75
33
45
22
44
28
53
57
15
43
41
56
25
18
29
34
36
38
46
20
42
35
19
47
22
63
44
22
31
46
31
40
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
67
12
97
30
38
75
29
54
84
51
51
40
50
46
60
65
68
52
29
68
30
39
17
57
37
61
37
46
58
31
35
38
82
58
$5 per unit to store the product for 30 days,
the supplier, it takes 3 days for them deliver
t a service level of 99%.
to pick a forecast method, then use it to
ost appropriate.
at is the standard deviation of demand?
data to help determine which forecasting
orecast correct, you won’t be able to answer
king 30 days out. You can still use “capital D” as
inventory.
Q2:
0.0
0.0
0.0
30 Day Demand
Average Daily Demand
Standard Deviation of Demand
Q3:
0.0
$0.0
$0.0
0.0
30 Day Demand
Ordering Cost
Holding Cost
Economic Order Quanitity
Q4:
0.0
0.0
0.0
30 Day Demand
Economic Order Quantity
# of Orders per 30 days
Q5:
0.0
0.0
0.0
0.0
0.0
Daily Demand
Lead Time
Standard Deviation of Demand
Z Score
Reorder Point
Bonus:
Beginning Inventory
248
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Qty Received from Supplier
Daily Demand
Ending Inventory
Action
No Action
Order More
Receive Order

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