Statistical Analysis Report on A Cat Corp: Forecasting Harvard Case Solution & Analysis

Introduction to the Case Problem

            This statistical report has been prepared in order to address the issues that are being faced by A Cat Corporation. A Cat Corporation is one of the leading manufacturers of electronic appliances specially the voltage regulators in India. The company targets the rural market of India, which could also be considered as the main market of the company and it is highly sensitive to changes in the prices of the products of the company.

            Over the previous several months, the sales of the company’s products have been falling and the management believes that there have been issues with the forecasting of the demand of its products in the market. The company is worried about the sales of the main product of the company, which is the voltage regulator and is also called as a transformer. A voltage regulator is widely used by the customers for a variety of purposes along with their electronic devices such as television sets and refrigerators.

            It controls the device voltages from load fluctuations. The issue of power failure is even worse in Vidarbha than any other areas. Therefore, in order to resolve these issues, the chief operating officer of the company has been assigned with the task of identifying the root causes of the declining sales and reports the solutions to the Vice President of A Cat Corp. There are a wide range of stakeholders which are associated with this company including the customers of the company, the management, operational staff and the employees. So now the future demands of the company needs to be determined by analyzing and interpreting the data based upon a range of the statistical tools used and then the recommendations need to be made on those results.

Analysis Plan

            The main problem which is being faced by the company which is resulting in all the other issues could be seen in the following problem statement:

“Over the several months the issue of under-stocking and overstocking has been faced by the company due the incorrect demand forecasting, which is the root cause for all other problems at A Cat Corp.”

            It has been stated in the case study that the sales have been declining for A Cat for the past several months and there seems to be no main reason for this decline, which is the incorrect forecasting methods being used by the operational managers that has been resulting in incorrect demand forecasts for the regulators.

            Therefore, based on this incorrect demand estimation, the management has never been able to satisfy the demand because when the demand was high, the company manufactured fewer transformers and when the demand was low the company manufactured many transformers. This resulted in the problem of overstocking and under-stocking. In this way, the customers and the company both had to suffer. As a result, more authentic methods should be employed by the operational methods to forecast the demand for the company.

            The nature of the business of A Cat Corporation is more of a non-seasonal nature and the main product of the company which is the voltage regulator would be used by the customers in all the seasons. Therefore, the demand forecasts for the transformers should be based upon certain factors in order to estimate the right demand for each period based upon a forecasting model. In this way, the management of the company would never overstock or under-stock, meet the demands of its customers and increase the sales of the company.Statistical Analysis Report on A Cat Corp Forecasting Case Solution

Data Collection Methods and Statistical Tools Used

            The statistical tool that has been employed in the analysis of the data is the excel spreadsheet and the data analysis add on which is also provided in excel in order to determine the relationships and dependencies based upon certain variables. The reason for using excel spreadsheet for this purpose is that in this case we are dealing with the unit sales of the company and in order to perform independent sample t-tests, descriptive statistics and regression analysis this tool is valid for all purposes.

            Furthermore, the demand quantities are basically the number of the units of the product manufactured or sold and its level of measurement is scale. There are no uses of any types of variables, which are measured at either nominal or ordinals scales of measurements.Hence, the use of other statistical packages such as the SPSS is not appropriate in this and it would just make the analysis complex, therefore, excel seems to be the best tool for performing the detailed analysis for the provided data as in exhibits 1 and 2.......................

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Statistical Analysis Report on A Cat Corp: Forecasting

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