Due to the unfulfilled orders in the approaches, hgh unit cost and penalty charges, te group ran bankrupt. Astrength came when after the situation there was plan of the next move which was done carefully and this enabled the coming out of the bankruptcy in the next one week and even came up with a profit in the week. Frecasting as an element was not used in the approach by the group. The element was necessary in the approach since it would make the group plan the production, peak and purchase more raw materials that would be used in the production.
Te problems that occurred in the group was majorly due to lack of forecasting. Te approach that was used in the study by the group had numerous weaknesses that came with lack of achieving of the objectives. Te idea by the group to chase the peak was a big mistake. Te group could have been prepared for the study and not chase time. The group also did not order any material for the first few week to more spending.
A a result of not foreseeing the consequences the group incurred high cost which was about 37000 pounds and resulted into low inventory. Te inventories that the group had was the bound of their capacity and this made the inability to manufacture most that the minimum amount of parts that they had and more of that because of the lack of finished goods, te group was not able to deliver on time and complete the orders that were there to satisfy the demand by the that fluctuating.
Tere was also missing of orders due to lack of enough finished good stocks. Aother weakness that the group came with is that they were not able to meet the demands of the consumers that were changing. Te inability led to the loss of the revenue that the group would have received from the fulfilled orders and also there was increment of penalty charges. Lck of forecasting was the main problem that was experienced in the group. Te group did not consider the changes that would in the and this made them not buy more raw materials for future production when the demand rose.
Lck of forecasting made the group not to be able to identify the time that the demand for the goods would be high so that more could be produced. Te failure that was brought due to lack of enough raw material could also be solved when the group would have focused. Te huge time that was spent in planning and arguing on the fall of the peak made it difficult. ..
Please type your essay title, choose your document type, enter your email and we send you essay samples