This Report Is About Yankee Fork and Hoe Company

Abstract

This report is about Yankee Fork and Hoe Company. The company produces and sells four different lines of garden tools. The garden tools range for either the occasional user or the everyday user. Some products are of the highest quality and some are more economical. The company faces fierce competitiveness in the market place. Product designs are straightforward and uncomplicated. President Allan Roberts is aware his company’s garden tools are for the advanced end user, and knows prices are very competitive. These are basically the same type of garden products that have been around for 30 years. Allan is aware the only way he is going to retain loyal customers and acquire new sales is to maintain high quality product offerings and also provide excellent customer service. However shipments are late and customers are complaining and they need their products delivered on time

Findings

Allan faces the loss of two of his biggest customers, True Value and Sears. If this were to happen, Allan knows this would be detrimental to his business. Allan has decided to acquire the assistance of a consultant to do an analysis of the matter and report back to him in seven days. Sharon Place, his consultant has decided to take the challenge. Allan asks her to primary take a look at the bow rake; reason being it has the highest overall sales volume as well as the most the complaints by customers. Sharon decides to speak with Phil Stanton and find out how production is going to begin. Sharon findings are the following:

• Forecasts are done by the month for the following year

• Forecasts are normally over inflated

• Forecasts are usually reduced by at least 10 percent or more by Phil due to price of steel

• Forecasts are not based on demand used

Forecasts are often difficult to predict, often time’s unforeseen circumstances can affect the market. For instance, a summer drought could play havoc on the gardening market. When weather produces a drought, this causes a decrease in use of garden tools. If the flowers, plants and grass in fried, then there is a decrease in demand for garden tools. Sharon’s finds two areas of concerns with the current system used for forecasting. The first area of concern is that, the production department does not really know how marketing department comes up with their forecast. Sharon faces the problem that the marketing department is not using demand forecasting process. Shipment data should be recorded correctly and adjust to meet future

demands. Sharon is aware that the market demands for gardening