A-CAT Corporation Case Solution
Statistical tools and analysis
Three tools and techniques were used in this analysis for forecasting. The statistical process analysis is done by the simulation method, Exponential smoothing and by mean of the former data. The simulation method evaluates the random sales of refrigerators that refer to the potential of transformers requirements. The exponential smoothing develops a framework that concludes the forecasting by taking a smoothing factor of 50% in the next forecast.
The validity of the data is the calculation by determining the correlation between sales of refrigerators and requirement of transformers. The analysis shows the data is highly correlated with each other that enclose its validity. The simulation method is highly appropriate for forecasting random sales and the data also shows inappropriate falls and declines in demand for transformers that can also be analyzed by the randomly adapting theorem.
The reliability is evaluation by the calculation of the reliability factor. The reliability of the exponential smoothing is verified by this factor, while the result for forecasting from the simulation method was not verified. At the other hand, it is found the results from the mean of the formerly forecasting of the previous years are highly reliable.
Decision
 The company should come up with the proper forecasting method as it is observed the demand and sales of the refrigerators is high in 2nd and 3rd quarter of the year. The demand for the refrigerators highly seeks the appropriate number of transformers should present in the inventory. The sales of the refrigerators are increasing and decreasing with a inappropriate rate that make it difficult for the management to know the accurate requirement of the transformers. The forecasting of the transformers should be managed by the recommended exponential smoothing. The company should maintain the inventory of transformers higher than its demand, in case if the demand increases, the company would have sufficient stock available. The exponential smoothing factor that is used is 50%, the company can increase the factor that in order to determine the higher sales of refrigerators.
Apeendix
| Quarter | Transformer Requirements
by simulation |
Transformer requirements
by exponential smoothing |
|
| 2011 | 1 | 2776 | 2688 |
| Â | 2 | 2675 | 2504 |
| Â | 3 | 2455 | 2356 |
| Â | 4 | 2675 | 2405 |
| 2012 | 1 | 2776 | 2795 |
| Â | 2 | 2399 | 2798 |
| Â | 3 | 2675 | 2571 |
| Â | 4 | 2675 | 2623 |
| 2013 | 1 | 2776 | 3050 |
| Â | 2 | 2675 | 2984 |
| Â | 3 | 2675 | 2899 |
| Â | 4 | 2675 | 2886 |
| 2014 | 1 | 2399 | 3330 |
| Â | 2 | 2776 | 3289 |
| Â | 3 | 2675 | 3198 |
| Â | 4 | 2675 | 2987 |
| Â Â Â Â Â Â Â 2,011 | Â Â Â Â Â Â Â 2,012 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,013 | Â Â Â Â Â Â Â Â Â Â 2,014 |
| Â Â Â Â Â Â Â 1,000 | Â Â Â Â Â Â Â 1,027 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,055 | Â Â Â Â Â Â Â Â Â Â 1,084 |
| Â Â Â Â Â Â Â 1,030 | Â Â Â Â Â Â Â 1,057 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,085 | Â Â Â Â Â Â Â Â Â Â 1,113 |
| Â Â Â Â Â Â Â 1,050 | Â Â Â Â Â Â Â 1,093 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,138 | Â Â Â Â Â Â Â Â Â Â 1,185 |
| Â Â Â Â Â Â Â 1,140 | Â Â Â Â Â Â Â 1,199 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,261 | Â Â Â Â Â Â Â Â Â Â 1,326 |
| Â Â Â Â Â Â Â 1,153 | Â Â Â Â Â Â Â 1,230 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,313 | Â Â Â Â Â Â Â Â Â Â 1,401 |
| Â Â Â Â Â Â Â 1,158 | Â Â Â Â Â Â Â 1,243 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,335 | Â Â Â Â Â Â Â Â Â Â 1,434 |
| Â Â Â Â Â Â Â 1,176 | Â Â Â Â Â Â Â 1,245 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,319 | Â Â Â Â Â Â Â Â Â Â 1,397 |
| Â Â Â Â Â Â Â Â Â Â Â 909 | Â Â Â Â Â Â Â 1,008 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,119 | Â Â Â Â Â Â Â Â Â Â 1,241 |
| Â Â Â Â Â Â Â Â Â Â Â 892 | Â Â Â Â Â Â Â Â Â Â Â 961 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,034 | Â Â Â Â Â Â Â Â Â Â 1,113 |
| Â Â Â Â Â Â Â Â Â Â Â 909 | Â Â Â Â Â Â Â 1,029 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,166 | Â Â Â Â Â Â Â Â Â Â 1,320 |
| Â Â Â Â Â Â Â Â Â Â Â 919 | Â Â Â Â Â Â Â 1,020 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,131 | Â Â Â Â Â Â Â Â Â Â 1,255 |
| Â Â Â Â Â Â Â 1,006 | Â Â Â Â Â Â Â 1,070 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,138 | Â Â Â Â Â Â Â Â Â Â 1,210 |
……………….
This is just a sample partial work. Please place the order on the website to get your own originally done case solution
Related Case Solutions:
FINANCILA ACCOUNTING FOR MANAGERIAL DECISION MAKING
Portfolio Selection and Capital Asset Pricing Model
PROJECT MANAGEMENT
Lockheed Martin IMS: Making a Contribution and a Profit
Hola-Kola-The Capital Budgeting Decision
Whirlpool and the Built-in Appliance Industry in India
Café D. Pownd
Dogus Group: Weighing Partners for Garanti Bank Merger and Acquisition
Angels and Devils: Best Buy’s New Customer Approach (A)
Analyst Conflicts (A): Resolved?