Read the case - \"Highline Financial Services, Ltd\" (Chapter 3, p. 135). Determ

Question

Read the case - "Highline Financial Services, Ltd" (Chapter 3, p. 135).  Determine and analyze the company's operational management issues; provide this information within your paper. As your "Resolution", answer the following three questions:

a. Forecast (predict) the companies demand for these three services (A, B, & C) over the next four quarters. Include a table showing your calculations.

b. What general observations can you make comparing this forecasted demand to past services demand history?

c. Which service should Freddie be most concerned with? Explain.

10 HIGHLINE FINANCIAL SERVICES, LTD. CASE Financial Services provides three categories of service to or promotion, and competition doesn't change, predict demand dients. Managing partner Freddie Mack is getting ready to pre- for the services the company offers for the next four quarters. fnancial and personnel hiring (or layoff) plans for the coming Note that there are not enough data to develop seasonal rela- Daat He is a bit perplexed by the following printout he obtained, tives. Nonetheless, you should be able to make reasonably good, ceems to show oscillating demand for the three categories approximate intuitive estimates of demand. What general obser- its of services over the past eight quarters: vations can you make regarding demand? Should Freddie have Service any concerns? Explain Quarter A Year Service 60 95 93 2 45 85 90 3 100 92 110 Year QuarterA 72 85 2 51 75 75 3 112 85 110 4 85 50 100 75 65 90 Examine the demand that this company has experienced for the three categories of service it offers over the preceding two years. Assuming nothing changes in terms of advertising Hanke, John, and Dean Wichern. Business Forecast SELECTED BIBLIOGRAPHY AN FURTHER READIN Acar, Yavuc, and Everette S. Gardner, Jr. "Forecasting ing, 9th ed. Upper Saddle River, NJ: Pearson, 2009. Method Selection in a Global Supply Chain." Inter- national Journal of Forecasting 28, no. 4 (October December 2012), 842-48 Hopp, Wallace J., and Mark I. Spearman. Factory - Physics, 3rd ed. New York: McGraw-Hill, 2008. Charles. "Forecasting from the Center of the Wilson, J. Holton, Barry Keating, and John Galt Solu- Methods and Systems 22, no. 1 (Spring 2003), P. erican Consumer Products." Journal of Business Bonomo, tions. Business Forecasting with ForecastX, 6th ed. New York: McGraw-Hill, 2009. Supply Chain." Journal of Business Forecasting me, Robert F. "Forecasting Performance for North Forecasting 31, no. 3 (Fall 2012), p. 12.

Explanation / Answer

Answer A

Calculations done based on year on year increase/decrease

In case of service A in Q1

{[(72-60)/72] +1} × 72 = 84

Forecast for service A

Q1 - 84 (20% YoY increase)

Q2 - 57(13.33% YoY increase)

Q3 - 123(10% YoY increase)

Q4 - 96(13.33% YoY increase)

Forecast for service B

Q1 - 76

Q2 - 66

Q3 - 79

Q4 - 38

Forecast for service C

Q1 - 112

Q2 - 63

Q3 - 110

Q4 - 111

Answer 2

The demand for all three services decreases on quarter 2, increases in quarter 3, and again decreases in quarter 4

Answer 3

Firstly, Freddie should be concerned about service B. The demand decreased in both the years. So, there are chances of decrease in demand for service B

Secondly, Service C is the point of concern due to the similar level of demand in first and fourth quarter. The demand decreases in second quarter, increases again in third quarter and is back to a similar level like first quarter.

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