CASE 11.1 PB Chemical Company Mac Brown knew something had to change. As the new
ID: 328261 • Letter: C
Question
CASE 11.1 PB Chemical Company Mac Brown knew something had to change. As the new Vice President of Sales & Mar- keting for the PB Chemical Company, Mac understood that when you sell a commod- ity product, where there is minimal difference between the quality and price, customer service and proactive selling effort usually are the difference between success and fail- ure. Unfortunately, PB's sales staff was using a fairly random method of soliciting sales, where they would work through an alphabetical list of customers, making phone calls to custom page 118Explanation / Answer
1- Dee should analyse the pattern of consumption by each customer and when they place an order and on what timing they need the product. The detailed database is needed to forecast and plan appropriately to know the standard need at each time.She should make a need analysis of each customers and their repective product and the volume.
2-Dee should forecast monthly product demand for each customer. Aggregate monthly production will normalize the demand of each customer so when there will be monthly product demand, PB will know how much product it should keep to supply.This forecast will be useful to both individual customers ans PB also.
3-The accuracy of the forecast can be judged by doing a variance analysis and if there will be any mismatch what are the factors which drove the variance.
4-This forecast will be use to better positioning of the product as well as to keep the inventory level according to forecasted demand so that there won't be strockout or excessive stocking. It can use to increase the market share also by acquiring more customers.
5-Dee should get the pattern and timing of the demand of customers along with other product and vendors from whom the customers place demand.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.