Highline Financial Services ,Ltd free essay sample

The first problem I noticed with the highland Financial Services is, the Manager. Why did it have to take him up till two years to look back and realize there was a problem with the pattern of demand of their services from the previous years? Looking at the chart presented, the problem with Highline Financial services is that the demand for their services is very inconsistent in some quarters. The demand for services begins with good numbers in the first quarter and then drops in second quarter. In the third quarter, demand rises tremendously and then drops again in the fourth quarter. There is a little more growth in the second year with the number of demands but it has similar patterns in all four quarters as the previous year. Furthermore the first and third quarters for each season receive higher demands. While both charts illustrate that demand is highest during the third quarter. We will write a custom essay sample on Highline Financial Services ,Ltd or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Moreover, I noticed that the demand for service B in year 2 dropped compared to the previous year. After analyzing the charts the main thoughts that come up are, how did the manager forecast on future demand? Did the organization plan on enough capacity to match expected demand within the organization and supply chain? If so, was it cost effective? After everything is said and done main problem I see is the demand for services keeps swinging back and forth at a steady pace and it is demonstrated with the number of demands per quarter. With this trend I can come to a conclusion that, demand will increase every year at a steady rate. Although demand will grow at a steady rate yearly, the services will still suffer from up and down fluctuations in the demand per quarter. This is because the services they offer are seasonal or they just have a peak period (third quarter) in which demand is at its highest. This is common in most organizations. An example of an estimate in demand using the judgmental forecasts is: Year 3 service Quarter A B C 1 84 80 112 2 58 70 70 3 126 78 112 4 90 40 110 Usually in cases like this, it is most likely that forecasts will not be perfect. So, managers will have to deal will have to deal with forecasts mistakes. Also, there will be nonrandom factors which will affect demand . These errors need to be monitored, so that they can be corrected. In addition to this it is important for highline to choose a cost effective forecasting technique which will limit forecast errors. In conclusion, I understand why the manger will be worried with the unsteady demand for their services. On the other hand I don’t think he should be very worried because, the demand has a pattern it follows from the previous years. In order to increase demand for service B, they can use a combination of forecast methods which will produce accurate results which can be used to satisfy demand and also plan on effective, design and actual capacity in order to satisfy the capacity requirements.