What is the strategic importance of forecasting for a business such as Pinkie Ice Cream ? What are the possible challenges faced by organizations that do not utilize forecasting in the planning of their operations?
What is the strategic importance of forecasting for a business such as Pinkie Ice Cream ? What are the possible challenges faced by organizations that do not utilize forecasting in the planning of their operations?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 11DRQ
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What is the strategic importance of forecasting for a business such as Pinkie Ice Cream ? What are the possible challenges faced by organizations that do not utilize forecasting in the planning of their operations?
Transcribed Image Text:Pinkie Ice-Cream Itd.
Pinky Ice-cream Itd. is an ice-cream company that is located in the city of Palma and has branches in
several communities. The brand is an emerging brand and is becoming very popular among children and
young adults. One of the reasons why this brand of ice-cream is becoming so popular is because the
quality is outstanding. The Operations manager work closely with the marketing manager to ensure
that the best quality ice-cream is sold to customer. The OM manager uses the best quality ingredients
and ensures that the best machines and labour are employed in the transformation process. They also
produce a variety of flavours to ensure that the customers have a wide choice.
Weekly customer demand for the ice-cream can be seen in the table below.
Week Demand
|(gallons)
280
2
295
3
315
4
300
5.
340
6.
335
7
350
Seeing that the company is fairly new, management is yet to formulate a mission and a vision statement
for the organization. They are planning to develop a strategic plan and would include these statements
along with strategies in the plan.
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