Saturday, September 28, 2019

Merriwell Bag Company Case Study Example | Topics and Well Written Essays - 500 words

Merriwell Bag Company - Case Study Example Furthermore, demand forecasting helps in constructing the pricing decisions as well as estimating the investment requirements for the future use (Lapide, 2006). From the demand forcast, it can be noted that the demand for the bags are maximum in the market in the pick season. It shows that Merriwell Bag Company’s bag demands depend largely upon its seasonality. However, it can also be observed that the demand for the bag declines steeply in the market during the off-season. Even though, from an overall perspective a growing trend can be witnessed in the demand forecasted. To certain extent the accuracy of forecasting can be improved through selecting separate forecasting groups with proper management control system. The primary objective of forecasting group is to make plans in order to collect appropriate information related to demand. The members of the forecasting group should be well trained in this regards. Members of the group should use both the qualitative and quantitative method in forecasting to gain more accurate information along with development of new measures for improving forecasting in future. After every session the group member should measure the processed method and re-analyze the data collected to minimize errors (Moon, Mentzer, Smith, & Garver, 1998). The forecasting method used by Ed Merriwell in the prior years was based upon his ‘feel’ which has been recently observed as ineffective in terms of accuracy. According to the quantitative method used, the sales of the organization are likely to increase during the entire year of 2008, especially in the season time. However, in establishing the new sales forecast, Ed Merriwell’s ‘feel’ is quite likely to have a negative impact on the operational process owing to the changes in the personnel associated with the customer purchasing departments along with the rapid increase in the short-shipped accounts. It is worth mentioning in this regard that quantitative method

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