Supply Chain Task 1

The pro forma statements provide an essential standard for operating a company throughout the year. These statements can determine whether expenses are expected to run higher in the first quarter than in the second. They can also decide whether sales can be expected to run above average in certain months. Furthermore, they can determine when a business should increase their marketing campaigns to boost sales in slower months. These statements provide a business with invaluable information to make important business decisions (Business Town, n.d.).

Pro forma financial statements are based on our income statements, balance sheets, and cash flow statements and the projections we make to see where each change during the projected time will take us in the future.

2. Pro forma financial statements, by definition, are predictions of a company’s financial statements at a future point in time. So why is it important to analyze the historical performance of the company before constructing pro forma financial statements?

What do pro forma financial statements show? Pro forma financial statements are basically the projected results for the financial statements in future, using the given assumptions of what is likely to happen in the current time. A pro forma financial statement shows the consequences of financial choices in the context of financial statements •

Amazon.com, Peapod, Dell, and many furniture manufacturers use push-pull supply chain strategies. Describe how each of these companies takes advantage of the risk-pooling concept.

A pro forma statement is “a financial statement prepared on the basis of some assumed events and transactions that have not yet occurred.”(Rollins, 2011) Pro forma statements are historical statements that provide statements; the most common are the income statement, balance sheet, and the statement of changes in financial position. They give management the opportunity to show the progress a company has made from each financial planning cycle to the next financial planning cycle. They also help to forecast what the company will need in upcoming cycles.

Operating Results: |2001 |2002 |2003 |2004 |2005 |2006 |2007 |2008 | |Net Revenue |128,313 |144,460 |159,985 |175,820 |189,007 |201,292 |211,357 |219,811 | |Less: Operating Expenses |57,741 |65,007 |71,993 |79,119 |85,053 |90,581 |95,110 |98,915 | |Broadcast Cash Flow |70,572 |79,453 |87,992 |96,701 |103,954 |110,711 |116,246 |120,896 | |Less: Corporate Expense |5,080 |5,604 |5,660 |6,328 |6,803 |7,245 |7,607 |7,911 | |EBITDA |65,492 |73,849 |82,331 |90,373 |97,151 |103,466 |108,639 |112,985 | |Less: Depreciation |90,000 |90,000 |90,000 |90,000 |90,000 |90,000

Before doing any calculations there are many important observations and conclusions that can be drawn from analysing Kraft’s financial statements from a fundamental perspective. Kraft has gone through some major changes in the past 4 years with the many acquisitions and divestitures they have undergone and these changes have had major implications on the financial statements.

The decision that has to be determined is whether to have either one or two warehouses.

Income statements are an important element crucial to the financial records of any company. Any profit making organization is expected to have records containing its income statements. Income statements are normally recorded annually at the end of a specific financial period. The major purpose of an income statement is to show stakeholders of the company such as managers and investors whether the company made a profits or losses in the period being reported. This performance analysis provided by the income statements can help managers come up with strategies to improve on profitability and growth of the company (Alexander and Jorissen 2005).

At the beginning of season, Burberry sourcing team and product development, quality control, designer , merchandising planning and buyers will have big meeting to review what the trend is , product and material will be launched for next season in order to plan the strategy. Buyer also will give souring team an approximately order quantity for souring team to give factory in order to prepare raw material, trims… etc , to shorten lead-time and to have materials available at all times in order to ensure the smooth flow of care

1.1 Forecasting is the basic and initial step in supply chain planning. Matching supply and demand is at the heart of operational planning. As most of the production systems fail to give an instantaneous response to customer demand, forecast of future demand is very necessary to make efficient and effective operational plans.

Estimated that the grocery industry could save $30 billion (10% of operating cost) by using

Shiv industries, the factory which is situated and based in Raipur manufactures molding rubber. This molding rubber is used in manufacturing cars now facing their profits is falling down because of the increased competition in the many cars manufacture company which were global companies in India after the opening up of the Indian economy to the international market. Despite good presence in the automotive sector it has only 5 %market share in the replacing sector. The main problem for the profits falling down is the shiv industries is located were far from the other companies which were situated in the Gurgaon in the district of Haryana. Many of the car dealers were situated in the Gurgaon were the market we can get profits. Now the shiv company should be replaced to the Gurgaon in Haryana to increase the profits because due to replacing their company to the Haryana they can easily supply the finished products and more over they can decrease the transportation cost also. This cost adds no value to the product and hence can be considered waste.so to eliminate this waste they need to relocate the

Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out.