It

Identifying Issues

Key Operations Management issues faced by XYZ:

1. Minimizing wastages and address Quality Issues

2. Increase Market Share
3. Improve Supplier’s delivery
4. Improve Customer deliveries
5. Forecast Accuracy
6. Sales Achievements
7. Utilization of Excess Capacity

Forecasting:
Forecasts are a fundamental contribution to the choice procedures of operations management
since they give data on future interest. The significance of anticipating to operations
administration can't be exaggerated. The essential objective of operations management is to
match supply to demand. Having a forecast of interest is vital for deciding the amount of
capacity or supply will be expected to take care of demand. Case in point, operations needs to
comprehend what limit will be expected to settle on staffing and gear choices, spending plans
must be readied, buying needs data for requesting from suppliers, and store network accomplices
need to make their arrangements.[ CITATION Sil98 \l 1033 ]

It is obvious that the XYZ company has problem not only in sales forecasting but also achieving
the sales targets. The company is not having any issue till 2014, however after 1st Qtr 2015 they
are facing problem related to sales achievement which resulted in inaccurate forecasting.

Thus, an accurate sales forecast facilitates effective planning. Over-estimates of demand can lead
to several problems, such as occupancy of valuable shelf space and increased inventory carrying
charges. On the other hand, under-estimates of demand can lead to stock depletion, lost sales,
and expensive overtime production to compensate for costumer demand.

Since the Co. is also dependent upon imported raw materials, XYZ Co. should ensure that they
are properly positioned to meet future product demand. Therefore, it is important for the
company to have an efficient and accurate forecasting model to predict future monthly sales. A
major requirement of successful marketing is accurately forecasting sales. First, market
opportunities are identified through marketing research. The size, growth and opportunity are
then measured and/or forecasted.

At the point when interest can be anticipated precisely, it can be met in an opportune and
effective way, keeping both channel accomplices and last clients fulfilled. Exact forecasts help
an organization stay away from lost deals or stock-out circumstances, and keep clients from
going to contenders. At all that really matters, the impact of exact figures can be significant.
[ CITATION Tri89 \l 1033 ]. Sales forecasting is an administration capacity that organizations
frequently neglect to perceive as a key contributor to corporate achievement. From a top-line
point of view, exact sales forecast permits an organization to provide elevated amounts of client
administration.