Wilkins Regulator Company is one of the leading companies in the market known for its production of fire valve, PVB and other segments. However, a detailed analysis of their forecast budgeting revealed that there are several issues with the implemented methods which might expose the firm to huge reputational risk and a possibility of losses. The company�s sales are dependent on several factors that are both linked to market and firm related. Unemployment rate, loan rate, prevalent weather, home construction rate, marketing of products, sales promotions etc are some of the crucial factors affecting the sales of the business.
1. How accurate was the demand forecast for the first quarter of 2005?
2. What is the current demand forecasting method? Who uses the demand forecast? What are the consequences, if any, if the forecast is inaccurate?
3. Create a demand forecast for the PVB product family for the next three quarters. How does your demand forecast compare to Wilkins’ demand forecast?
4. As Bernie Barge, what would you recommend to management and why? How should Barge convince management to follow his recommendations? Develop an action plan.