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Franklin Fan Company - Forecasting
Franklin Fan Company - Forecasting
Introduction
Franklin Fan Company being a manufacturer and distributor of window fans is facing a concern
associated with the demand for the product. An appropriate forecasting method has to be adopted
by the company.
The problem with respect to Franklin Fan Company is to bring about an enhanced forecasting for
the materials. Well identified new materials required for the fans. The rush orders need to be well
planned as the demand for the production of fans has to be met. The new material requirement
Analysis
While managing the forecasting for the fan, marketing is the key to the determination of forecast
for the fans at Franklin, The basis is that of the unplanned demand anticipated for the months of
the year. The changes in the current forecasting system would involve the understanding of the
need of the customer and the systematic procedure with the appropriate analysis done for the
market. The forecasting method deployed is the market analysis based on the data collected from
Conclusion
Two options that are proposed for Franklin Fan Company include the enhancement of the
forecasting system and getting to know well in hand about the demand so that efficient planning
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can be deployed. The second alternative to know well in hand about the demand so that efficient
Pilinkiene, V. (2008). “Selection of Market Demand Forecast Methods- Criteria & Application”,
Engineering Economics, Vol. 58 (3), pp. 19 - 25
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Annexure A – Forecast For Window Fans
Month 2015
1 64,500
2 32250
3 47500
4 34000
5 39000
6 45000
7 52000
8 39000
9 41000
10 32000
11 59000
12 65000
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Annexure B – 5-Step Critical Thinking Decision Making Model (Franklin Fan Company)
The problem with respect to Franklin Fan Company is to bring about an enhanced forecasting for
the materials. The new material requirement plan has to be well coordinated
The problem is this …
Well identified new materials required for the fans. The rush orders need to be well planned as
the demand for the production of fans has to be met.
This is an important problem because…
A situation can arise wherein the production of the fans can be delayed and the demand of
customers are not being met
The key question(s) that needs to be answered to solve this problem is…
1. What are the options that are available with organization so that can choose from to have
The entry in the priority is based on the committed delivery to the customers. scheduled receipts
along with the lead time is crucial
Some important assumptions I am using in my thinking are…
Some of the key assumptions being made is associated with the exploration of the problem along
with forecasting of Franklin Fan Company .
The customers and other stakeholders who are associated to the Franklin Fan Company
Note: Remember to view the information you have obtained for potential bias. This is from the
perspective of your own bias to the research and the bias of the authors who compiled the data
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and the research you gathered. In other words, do not discount the importance of other’s data
The implications in case the problem identified is address include the following,
1. The enhanced forecasting would be able to assist the company
2. The demand of the fans relevant to the promised orders can be met promptly
If this problem does not get solved, some important implications are…
The implications in case the problem identified is not addressed include the following,
Probability of the business lost to other brands in market
The following options are available to the company given the nature of the problem identified
1) Enhancement of the forecasting system
2) Getting to know well in hand about the demand so that efficient planning can be
deployed
Note: if the problem is one-dimensional, there may be just one correct solution.
1) As described in the earlier step, the two options proposed are relevant to address the
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problem. However the second alternative to know well in hand about the demand so that
The implementation of the solution along with the demand consideration linked to the