A-CAT Corp. Statistical Analysis Report Harvard Case Solution & Analysis

A-CAT Corp. Statistical Analysis Report

Identification of Case Problem

A number of issues specifically relating to forecasting are being faced by the company and this report focuses on resolving them. The rural market is the main market of the company, which is highly sensitive to prices of the company’s products.

a-cat corp

a-cat corp

The forecasting of the actual demand prevailing in the market has been an issue for the company and as a result of this;the sales of the company had been falling. The main product of the company is transformer, which is also called as the voltage regulator and its sales had dropped significantly. Those customers who possess electronic devices tend to use voltage regulators for instance for their refrigerators and television sets. The voltage regulators control the fluctuation of the electricity and save other electronic devices from power failures. These products of the company were of high importance to the customers in Vidarbha as compared to most of the other areas and the reason for this was that the issue of power failure was worse in Vidarbha.

The chief operating officer of A Cat Corporation has now been assigned the task to investigate this issue, formulate new models and resolve the demand issues facing the company. Resolving the issues immediately is of utmost importance as there are many stakeholders connected with the company including the employees, the management, operational staff, the company itself and the customers of the company. A range of statistical tools need to be employed to analyze the data and formulate solutions to all the problems of A Cat Corporation.

Analysis Plan

The root cause of all the other problems faced by A Cat Corporation could be highlighted through the following problem statement:
“A Cat Corporation has been facing the issue of overstocking and under-stocking over the past several months because of incorrect forecasting techniques being used by the company for forecasting demand. This is the root cause for all other problems at A Cat Corporation. ”

The right quantity of the regulators is not being forecasted. As a result of this, when customers demanded more, the company supplied fewer transformers and vice versa leading to the problem of over and under-stocking. Therefore, first of all analysis needs to be performed for formulating new forecasting models for transformers.

The demand for the transformers is non-seasonal and equal quantity of the items would be demanded by the customers in all seasons approximately. Therefore, this shows that the forecast models for demand estimation of transformers should be based upon certain factors on which the demand is dependent so that the right quantity is estimated to be demanded in each period and thus the issue of under and over-stocking is resolved.

Methods of Collecting Data & Statistical Tools Used

The excel spreadsheet package and the data analysis add on provided in the excel package has been used in order to analyze the data. The dependencies and the relationships have been constructed on the basis of certain variables. The main purpose of using the excel package for analyzing the data is that the nature of the data is of that type and in analyzing the unit sales we need to generate descriptive statistics, regressions, and independent sample t-tests and using excel for these purposes is appropriate............................

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