OVERALL CONCLUSION

Purpose and Limiting Conditions

This report is prepared based on the information given in case study. Accordingly our findings
are exclusively on the data and information provide to us. We relied upon the data and
information mentioned in case study.

The purpose of engagement is to assist improvement of forecasting accuracy, minimizing waste,

developing supplier relations, etc. In the capacity of ‘Operation Management Consultant’.

Financial Results and Interpretations

Forecasting
Company volume is growing approximately 19% from year 2013 to 2014 whereas in year 2015
1st quarter volume growth is 17% and gradually drop to -2% in 2nd quarter and July & August
volume drop by 7.3% & 4.8% respectively. As forecast is based on past actual sales which is
lower than last year so every month forecast is also gradually going to down.

XYZ is using three month moving average forecast usually moving average method avoiding
responding to random variations.

Company need to take following corrective action in order to achieve 4th quarter growth of year
2015.

 Additionally we need to consider some judgemental and qualitative factors related to

sales issues.
 Start some sales campaign by given quantity discount Prepare forecast for the month
of September to December 2015 with minimum growth of 15%.
 Announce attractive incentive policy for the achievers.
 Improve delivery time by reducing the order lost and customers place orders
electronically, directly to the picking area
.
only 60% to 65% so need to increase the capacity utilization in coming years. We propose a
forecast for the year 2016 attached in annexure – A with minimum growth of 21% considering to
maintained quarter growth. Additionally Company need to develop forecast for the year 2016
considering that company also want to increase its market share in the local market as well as
expanding internationally (in Africa) in the upcoming years. Currently XYZ utilizing its capacity
company approaching the market in Africa. They need to consider the following questions.

What is the dollar value of these imports?

How much do the imports of Alkyd Resins vary from one country to another in Africa?

Which countries are supplying Alkyd Resins to Africa?

Do exporters serving the market in Africa have similar market shares across the importing
countries?

On the supply side, Africa also sells to the international market of Alkyd Resins.

What is the value of these exports and which countries are the largest buyers?