Forecasting
Sales Forecast for Riordan Manufacturing
Riordan Manufacturing is pursuing a growth strategy, with a stated target of increasing sales by $50 million by the end of 2007. According to the annual invoices issued for 2005, the firm already has annual sales of $50.8 million; this is a target to effectively double the demand over a period of two years. The sales will be achieved through increasing sales to existing customers, which is expected to account for 60% of the increase, as well as attracting new customers. To put the plan into action it is necessary not only to develop underlying strategies to promote growth such as the increased incentives for the sales force, it is also essential to develop a sales forecasting plan.
When forecasting sales there are different methods which may be utilized, some are more scientific than others. One approach may be to make educated guesses, looking at past performance as assessing the influences and sales which are likely to occur. This is an ad hoc approach, and is usually seen as likely to be inaccurate, even when based on experience and knowledge (Armstrong, 1985). Forecasting sales from existing trends and patterns...
Riordan Manufacturing employs 550 people worldwide with projected annual earnings of $46 million and operates as a global plastics manufacturer. Riordan Manufacturing, Inc. is one of the industry leaders in the field of plastic injection molding in terms of both total volume and quality. By utilizing the company's state-of -- the art design competencies, Riordan Manufacturing can create innovative plastic designs that are well respected in their applications. Riordan holds
Riordan Manufacturing, a company that is wholly owned by Riordan Industries, a Fortune 1000 enterprise specializes in the field of plastic injection molding. The business is unique due primarily to Riordan extensive knowledge and expertise with plastic moldings. Innovations in plastic and its uses have created greater demand for Riordan products. Namely, innovations in bottling, auto manufacturing, and National Defense have created an environment for robust growth. Its products currently
It is natural that suppliers forecast their own demand, and where long-term relationships have developed, there is a greater potential for the supplier to make the loan for cost. Furthermore, where Riordan is a major customer for that supplier, there may be a greater willingness to fulfill the order, and put that customer before smaller competing firms in terms of priority. If Riordan are ordering from a firm they
Specifically, Riordan stocks the polymer material despite the fact that the material is obtained locally and poses no risk of unavailability or delivery problems. Conversely, it, does not stock the electric motors even though their availability is both crucial to Riordan's production and supply chain and also subject to predictable shortages of as much as 7%. Naturally, the solution would be to stock the electric motors instead of the
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