South African rapper, Cassper Nyovest, has launched a business venture manufacturing his very own clothing and shoes. Cassper wishes to ensure the highest levels of customer satisfaction. Argue the importance of accurate demand forecasting as a principle of an inventory management system for Cassper. Note: Provide at least two application points.

South African rapper, Cassper Nyovest, has launched a business venture manufacturing his very own clothing and shoes. Cassper wishes to ensure the highest levels of customer satisfaction. Argue the importance of accurate demand forecasting as a principle of an inventory management system for Cassper. Note: Provide at least two application points.

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.2: Forecasting Demand

Problem 1LO

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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Demand of Hairdryer from January to July Month Demand January 2800 February 2870 March 2968 April 3000 May 3100 Jun 3150 July 3400 a). Calculate forecast future demand for May, June, July and August by using 3 months simple moving average. b) Determine TWO (2) consequences if the company produce supply more than the customer demand. c) In your opinion, provide ONE (1) perspective you will look into supplier before made a decision to select a supplier.