Read through the Case Study entitled “M&L Manufacturing” in Chapter 3 of your textbook. Examine the historical trend this company has experienced for the two products discussed. Prepare weekly...

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Running Header: M & L Manufacturing
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M & L Manufacturing
M&L Manufacturing
Potential benefits of more formalized approach of forecasting
Forecasting is an important part of any organization because it gives the information to the organization which helps in determining the future demands of the various products of the company. It helps in reducing the inventory and labor cost of the company and keeps them looking ahead by using the various analysis and learning from past. Thus it leads to better planning process because using this; managers can anticipate the future and can plan accordingly.
Potential benefits of more formalized approach of forecasting include the better inventory management, better scheduling and on time delivery of the different services/ products , higher satisfaction of the customer, more accuracy in the financial planning and analysis and better prediction of the demand. It also provides easiness of utilizing the resources used for the calculation like computer and to quantify information. In the less formalized approach it is more likely that personal intuition of the various persons making the prediction is used which may lead to the personal biasness and get reflected in forecast made. Also the less formalized approach could be used in case of small forecasting problems only because as forecasting problem of the company gets larger then it is not possible to solely rely on the approach which is less formalized because the intuition of some people is not enough for processing the huge quantity of the information.
Weekly forecast for next four week of both products
Product 1:
For the Product 1, linear trend method of forecasting will be used because after plotting the data it is seen that there exists the linear pattern of the demand in every week except that for the demand in the week 7 because in the week 7 there...