Discuss the following in 2000 words:
1. Describe the characteristics of the product (GREEN Air-conds) sold by MUZTAFAH. How has consumer preference on this type of product changed over the years? Do you think MUZTAFAH understands its customers' changing needs?
2. Looking at is MUZTAFAH currently using a time series or causal forecasting method? Explain the difference between these two (2) types of forecasting methods and how do you identify with each of the method.
3. Based on the data given, how would you advise Mr Sani in measuring the performance of his forecasts? What metrics would you recommend to Mr Sani and how would it help him?
4. Is this type of forecast appropriate for MUZTAFAH if the management would like the tracking signal (TS) to be within +1- 2.00?
5. What are the different forecasting methods that are appropriate for MUZTAFAH's product?
6. If Mr Sani's forecasts are consistently too high or consistently too low, how would you recommend him to remedy the situation? Why?
7. If the average sale price for one set of air-cond for a typical HDB 5-room unit is $8,000 and the average cost to acquire is $6,800, how much profit is being lost each month as a result of poor forecasting( over forecast or under forecast)
Note: For ease of calculation, assume all air conditionings arrive on 1st of the month and all air-conds remaining at the end of each month are sold at 15% discount to customers or competitors.
8. Suggest what else MUSTAFAH can do to improve future forecasts.
9. Suggest what are the relevant supply chain processes or technologies that MUZTAFAH can implement in order to achieve a better service supply chain performance?