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A company is into manufacturing an antibiotic product. This is for veterinarian purposes. During floods when animals such as cows,

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1(a). A company is into manufacturing an antibiotic product. This is for veterinarian purposes. During floods when animals such as cows, buffalos, or other bovine species have digestive disorders, this medicine is very effective. If you were to give a thought to having a supply chain designed for this company, what will be your choice - responsiveness or efficiency? Ideally, how will you balance these both? 

1(b). Consider the situation of a pharmaceutical manufacturer. The basic raw material is abundantly available and comprises almost 75% of the total cost of the finished product. However, they also require some other ingredients that are not very expensive and also are required in small quantities but are available only seasonally.

From the ABC, SDE, and SOS inventory model strategies, what type of inventory strategy you would suggest to this company and why?

 

2. Following data is sourced from the regulatory authorities. Using this data, build the below-given forecasting models:

Naive Forecast

2 Months Moving Average

Exponential Smoothing (Alpha = 0.3)

Out of the above three, which model will give the most accurate results? (Using MAD - Mean Absolute Deviation to compare the models)

 

3. Below are the details of the inventory of a store dealing with automobile spare parts. Using the concepts of ABC analysis, categorize the spare parts into A, B, and C categories. (If required, you may have assumptions, but do mention them in your answer.) 

 

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