MGT613 Assignment No. 1 Solution

Semester "Fall 2011"

"Production and operations management" (MGT613)

Assignment No. 1   Marks:  20

FIFCO is a football manufacturing company in Sialkot, it has started its operations from January 2000 and since then the company is unable to gain ample profits and grab the expected market share. The major mismanagement noticed is especially in the area of inventory management. Due to this finished stocks are pilling up in the warehouses. The situation is very drastic and company is unable to handle its stock. It seems that the company is facing problems in their forecasting, as the company is unable to assess and meet the actual market response that might affect the demand and fulfillment of customer's orders. After analyzing the situational factors it seems that the company is unable to forecast demand effectively. The actual and forecasted demand of the past five years is given as under:

Years

2005

2006

2007

2008

2009

Actual demand (Units)

4000

3700

4000

4150

4050

Demand Forecasted (Units)

4500

4000

3500

3500

4200

The situation is very alarming for management and you as an operation manager of the company are required to examine and analyze all scenarios and give your recommendations that:

What would be the core areas you have to cover in order to have a most accurate forecast for the company?

What are the steps you would like to follow in the design of a most effective forecasting process? Give your suggestions after analyzing the variances in given table.

Important Tips

This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 01 to lecture no. 09 and reading handouts as well as recommended text book). 

Video lectures can be downloaded for free from Online VU Lectures.

Schedule

Oct 21st, 2011

Oct 28th, 2011

Note:

Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date.  This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Solution:

Q. 1 answer is in lecture No. 9, and Q. 2's answer is on page 45. Kindly take the data from the said locations.