MGT 309
3 April 2015
Problem Set 1: Information and Forecasting

2. Mr. McNeely would have a major positive affect to his current means of ordering if he switches to Web-based ordering system. The following categories are where each positive change will occur: order accuracy, time, and quick filling of orders. The order accuracy will change due to the easily accessible selection capabilities that one can use while listening to an order being placed. The time category is due to the time reduction of having to send information via male or call order to the manufacture warehouse. Instead he can now send order via web and continue on to the next order. The quick filling of orders also reduces the times. By the company sending orders via web base the warehouse that stores the inventory can begin placing the order together quickly instead of waiting for an order sheet or invoice to come in via mail or courier.
4. A. Based on the aggregate monthly forecast the LA DC will demand 3000 pairs. Memphis and Dayton will demand 3600 and 4200 respectfully. The remaining 1200 will be shipped directly from the warehouse.
B. If the forecast in July results in an increase by six percent the following increase in demand from each DC will be as follows: LA will demand 3180, Memphis will demand 3816, Dayton will demand 4452, and the remaining 642 will be distributed from the warehouse.
6. A. Yes I believe Mr. Gregory should do the change. It would cost more money, but the reduction of inventory can lead to a reducing the space needed to hold inventory and a more accurate sales forecast would help increase profit and allow Mr. Gregory to afford the extra expense of a thousand dollars as well as increase his earnings.
B. The customers could encourage Muscle Man’s forecasting abilities because this would help keep inventory at a prime level and supply only the needed inventory that