SCMT1255/255

SCM INVENTORY GROUP CASE STUDY GUIDELINES AND RUBRIC

Case Title: 11.1 Northcutt Bikes

Task

This is a group assignment. In your group, you are required to produce a written business report of approximately 1000 words +/- 10%; MS Word
has a word-count function to assist you in knowing if you have too many words, or too few (words in tables figures and graphs do not count toward
the word-count). Familiarize yourself with the case scenario. It is important to demonstrate and present your analysis to justify your answers and
recommendations; the more ‘reader-friendly’ the better. It is important to consider the best graphical way to present your analysis. Remember to
validate, as a group, any tasks that have been completed individually.

Scenario

The scenario is as described in Case 11.1 from the course text on page 362, In this scenario, assume you are the SCM inventory analysis team
preparing a business report for your manager. Your manager is not necessarily familiar with all the details; therefore, you should ensure that you
present your analysis with all the relevant information to ensure he/she does not have to ask any questions. In the event that any information you
require is missing from the case, make an assumption and ensure the assumption is referenced in your report. Whilst there is a theoretical ‘best’
answer, your report will be marked on the logicality of your solution, as well as any assumptions made to justify your solution. The data table in the
case is not to be used – you are to use the Excel data file in the assignment folder. Additionally, for the purposes of analysis, assume that the total
SKU count for Northcutt Bikes is 10,000.

Expectations

1. Answer the 3 questions at the end of the case study.

2. Your report will define – EOQ, ROP, and Safety Stock for both SKU’s; furthermore, you will explain the possible inventory savings across the
entire inventory (10,000 SKUs). Your analysis should also give the Manager a recommendation on projected warehouse utilization and
suggested expansion timelines. Calculate the warehouse capacity reduction based on the new EOQs, assuming there are 10,000 SKU’s. You
will have to use a growth forecast; perhaps research the growth in the bicycle components industry.
3. Calculate the forecast error metrics for the two SKU’s including MFE, MAD and MAPE. Create a 3-period moving average forecast for both
SKU’s and comment on these forecast metrics (MFE, MAD and MAPE) compared with the original forecast metrics.

Written Report

Submit your word document (and Excel spreadsheet if desired) to Brightspace (D2L) by the due date. Please ensure all group members are
identified on the first page with SAIT registration numbers. Standard grading rubric for SCM Case Analysis applies, see below.

SAIT Polytechnic │ School of Business Page 1


SCM INVENTORY CASE ANALYSIS GRADING RUBRIC
Area/Mark 0-1.0
Identification  Unable to correctly
of Main Issue/ calculate the EOQ, ROP,
Problem or Safety Stock
 Does not consider any
(5.0) quantitative data on
projected savings for the
entire inventory
 Does not consider any
quantitative data on
projected warehouse
capacity, with a
recommendation on
expansion timelines
Quality of  Analysis and
Analysis and interpretation is basic or
Interpretation limited
 Provides a limited
(5.0) summary or restatement
of the case facts
 Provides limited, often
irrelevant argumentation
 Discussion is inadequate
and limited
 Conclusions and
implications of the issue
are missing
Quality of  Unable to provide
Solutions/ solutions/strategies.
Strategies Lacks problem-solving
skills.
(5.0)  No information provided
to support ideas
 No support for
statements made
SAIT Polytechnic │ School of Business
2.0-3.0
 Correctly calculates one of
the EOQ, ROP, and Safety
Stock
 Considers and provides
quantitative data on either:
o Projected savings for the
entire inventory
o Projected warehouse
capacity, with a
recommendation on
expansion timelines
 Provides partial analysis
and interpretation. Issue
needs further exploration.
 Provides an incomplete
summary of the case facts
 Provides weak, illogical
argumentation that does not
tie in well with the case
 Draws a few conclusions
and identifies some
implications
 Provides some
solutions/strategies,
showing limited problem-
solving skills
 Provides limited use of
information to support
solutions/strategies
 Most statements are not
supported with evidence
4.0
 Correctly calculates the
majority of EOQ, ROP,
and Safety Stock
 Considers and provides
some quantitative data
on projected savings for
the entire inventory
 Considers and provides
some quantitative data
on projected warehouse
capacity, with a
recommendation on
expansion timelines
 Provides very good
analysis, synthesis and
interpretation of the issue
 Provides a relatively
clear summary of the
case facts
 Provides logical and
convincing
argumentation that
mainly ties to the facts of
the case
 Draws most conclusions
and identifies most
implications
 Identifies original and
well developed
solutions/strategies,
demonstrating effective
problem-solving skills
 Provides sufficient
information to support
solution/strategies
 Clearly supports most
SCMT1255/255
5.0 Earned
 Correctly calculates the
EOQ, ROP, and Safety
Stock
 Considers and provides
justified quantitative data on
projected savings for the
entire inventory
 Considers and provides
quantitative data on
projected warehouse
capacity, with a
recommendation on
expansion timelines
 Provides a comprehensive,
insightful analysis, synthesis
and interpretation of the
issue
 Provides a clear summary
of the case facts
 Provides logical and highly
convincing argumentation
tied to the facts
 Draws clear conclusions
and identifies implications
 Identifies innovative and
comprehensive
solutions/strategies,
demonstrating outstanding
problem-solving skills
 Provides extensive
information to support
solutions/strategies
 Clearly supports statements
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Area/Mark 0-1.0
Writing Skills  Paragraphs are poorly
written, with no transition
between sections,
creating confusion and
(2.5)
lack of continuity in the
response
Mechanics,  Numerous errors in
Grammar, usage, grammar and
Professional mechanics, affecting
Format readability and meaning
of the paper
(2.5)  Many errors in APA
citation, demonstrating
lack of citation
knowledge
 Does not meet
requirements for an
academic response
 Does not adequately
meet any case study
written requirements
Area Identification of Main
Issue/Problem
Mark 5.0
Earned
Total Score out of 20:
Instructor’s Comments:
SAIT Polytechnic │ School of Business
and examples
2.0-3.0
 Writes paragraphs that are
often poorly developed with
few transitions between
sections
 Lacks continuity and
organization
 Quotes and evidence poorly
integrated into sentences
and overall paper
 Frequent errors in usage,
grammar and mechanics,
interfering with readability
and meaning of the paper
 Uses APA citation
inconsistently and with
errors
 Meets a few requirements
for an academic response
 Meets a few case study
written requirements
Quality of Analysis and
Interpretation
5.0
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statements with evidence made with evidence and
and examples examples
4.0 5.0 Earned
 Writes well-developed  Writes carefully crafted
paragraphs with paragraphs, and transitions
transitions between between sections
sections  Shows excellent
 Shows good organization organization
 Quotes and evidence  Shows smooth integration of
integrated well into quoted material into
sentences and overall sentences and overall paper
paper
 A few minor errors in  Mainly error-free
usage, grammar or  Uses APA citation correctly
mechanics  Meets all requirements for
 Generally uses APA an excellent academic
citation correctly response
 Meets most requirements  Meets all case study written
for a well-written requirements
academic response
 Meets most case study
written requirements
Quality of Solutions/ Writing Skills Mechanics,
Strategies Grammar,
Professional Format
5.0 2.5 2.5
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