Recommending a Forecasting Method Type for a New Company
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The first step in this project requires each member to research and select a relatively new company for which he or she will use as a benchmark. After researching your selected company, come up with a recommendation, for them, on which type of forecasting method they should use and why. Based on the recommendation, you must create a spreadsheet with a 12-month forecast highlighting the key factors used in its development. Your spreadsheet may also contain assumptions that support your argument.
- Research and select a relatively new company.
- Explain the various methods of forecasting to develop an aggregate forecast.
- Explain which type of forecasting method the company should use and why.
- Create a spreadsheet with a 12-month forecast highlighting the key factors used in its development.
- Explain why you chose the method that you did.
- Provide some assumptions that support your argument.
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Solution Summary
The solution discusses recommending a forecasting method type for a new company.
Solution Preview
Please find attached the spreadsheet requested and below a discussion of forecasting methods.
Forecasting Methods
Introduction
John and Michael Philips brothers established the Stone Horse Supply Company in year 1975. Company provides the horse feed related products to the local areas. In 2006, company was established as the largest store chain to provide special horse feed products on national level. Stone Horse Supply Company often face problems to regularly provide the products for customers because of excess material or expediting materials available from suppliers. Company was not able to forecast the actual demand of products that impacted the production of them. Company faced problem in regard to the new sales opportunity and enter in new market that impacted its business. Cargill Feed has a long and successful history of providing animal nutrition and feeds. Cargill Feed founded in 1865 and today provides products in 65 countries with 142000 employees. In the context of this work, Cargill Feed is used as a benchmark of feed industry for forecasting the demand of Stone Horse Supply Company.
Organizations use different forecasting methods to maintain the inventory and production facilities. These methods are divided into the qualitative and quantitative method. Qualitative methods are based on survey techniques, while quantitative methods are calculated through using statistical or mathematical technique. Qualitative or survey methods used to obtain or collect information about the future purchase plans of potential buyers through collecting the opinion of experts or interviewing the customers (Rothwell & Kazanas, 2003). These methods are taken long-time and accuracy of these methods depends on the respondent contribution or views. Survey method is generally used to estimate the demand of new products. Various survey methods are discussed below:
Customer interview method: Under this method, company directly interviews with customers or buyers and analyzes ...
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