Statement of the Problem

ACJ Manufacturing has history of misaligned level of inventory and demand due to forecasting
inefficiency. In this light, how can ACJ Manufacturing improve its operations through the introduction of
a formal forecasting method?

Assumption

1. The Company is relatively new in the industry being operational for three (3) years
2. Middle Management Organizational Chart
a. General Manager concurrent Marketing Manager
i. Retail Outlet Managers
ii. Administration and Finance Manager
iii. Operations Manager
3.

Recommendation

In view of the information and evaluation of several courses of actions, the researchers collectively
recommend the following:

1. Use of formal forecasting methods mainly to provide valuable information for a more efficient
production planning and inventory management;
2. Inventory level and production to be in line with the results of the forecasting methods. This will
minimize the expenses related to maintaining and manufacturing of products;
3. Periodic evaluation of the effectivity of the forecasting method being used by the Company; and
4. Conduct of further studies taking in consideration the manufacturing and inventory costs data of
the Company.

Conclusion

As discussed in this case, the use of forecasting is critical specially to the manufacturing industry. The data
that were used showed that to effectively budget time, money and other resources, there should be a
definite forecast used to allocate the budget to where it should be. Also, these forecasts showed that to
limit the rise of issues, the personnel of each company should be allocated carefully in order to maximize
production.