Read the case study of Yankee Pay and Hoe Company on-page 502-503. Answer TWO questions on page 502 regarding this case (at least 100 words each).
1 . Comment on the forecasting program being used simply by Yankee. Advise changes or perhaps improvements that you believe will be justified.
Forecasting is a crucial component of managing supply in order to meet buyer needs although ensuring costs are held low. Without proper forecasting, firms can see a direct hit with their bottom line. For example , too little inventory leads to stock outs and the loss of clients whereas too much inventory brings about increased keeping costs. There are many issues with the forecasting program used by Yankee Fork and Hoe Business. First, there is little/no connection between the promoting forecasts and the production forecasts. Therefore , these kinds of departments will be creating their particular demand forecasts. In addition , promoting meets only once a year to look for the demand for the entire year. In addition , the marketing forecast is based on shipping and delivery data rather than actual require data which could be the reason for the scarcity at the end of each year. As shipping info is being employed rather than genuine demand, the shortages from year can cause shortages over the following year. Subsequently, production lessens the marketing demand prediction by 10%, because they believe marketing provides inflated the numbers. Therefore , when production is short, they do not have enough time for the forgers to catch up.
To solve problems, marketing and production need to communicate to create a forecast based on require and not shipping information. Additionally , the production section cannot cure the new prediction. The new, more accurate demand outlook will allow the availability department to develop and maintain a far more accurate development schedule to meet the demand and elevate merchandise shortages.
2 . Make your own prediction for ribbon and bow rakes for each and every month in the next year (year 5). Warrant your prediction...