ACJ Manufacturing

GROUP NO. 4
Rodriguez, Arnel
Benavidez, Jansen
Poveda, Gregorio
Torres, Niña
Marvida, Josephus
 BACKGROUND

• ACJ Manufacturing caters the distribution of parts to

office supply stores and computer parts and accessories
stores.
• Manufactures 20 different of computer spare parts and
accessories.
• However, the bulk of orders, ACJ
 Statement of the Problem

• ACJ manufacturing was not able to project the cost of raw

materials and the bulk of orders which made them face a
temporary stocks issue.
 Assumptions

• If the manufacturing company continues not to forecast

the incoming spare parts orders and cost of raw materials,
more product issues will arise for them to sort out.
 Areas for Consideration
1. FINANCE - ACJ Manufacturing was mainly producing two
products (product 1 and product 2) out of the twenty
products. However, without proper forecast, there were
products that were not sold (overstocked) and there were also
times that products were immediately sold (understocked).
Also, the raw materials being used to produce the two
products steadily increases that it becomes a problem if not
effectively monitored/projected.
2. LOGISTICS – ACJ Manufacturing did not have an effective
procurement process which led them to be under and
overstocked at times. There were times that even the
management were unsure on what to do on occasions that
products were understocked that it even led to management
disputes.
 Data Analysis
WEEK PRODUCT # 1 PRODUCT # 2 FORECAST USING NAÏVE METHOD
1 50 40 WEEK PRODUCT # 1 PRODUCT # 2
2 54 38 15 100 46
3 57 41 16 104 46
4 60 46 17 107 46
5 64 42 18 111 47
6 67 41
7 90 41 PRODUCT # 1 PRODUCT # 2
8 76 47
9 79 42 SLOPE 3.4571 0.3626
10 82 43 INTERCEPT 48.2857 40.0659
11 85 42
12 87 49
13 92 43
14 96 44
Alternative Courses of Action (ACA)
ADVANTAGE DISADVANTAGE
Create an inventory list to All items can be accounted It may be difficult to cope up
monitor the number of items for. with bulk changes in
for each product. inventory.

Conduct a study on the A study can manage the A study may still be different
demand trend for ACJ expected demand for each from actual demand or if an
products. product according to need, unexpected occurrence may
parts, season, etc. happen that is not predicted
by the study.

Reduce and integrate the There will be lesser products Product sales will be lesser
number of products. to be monitored. which in turn will reduce
generated profit.
Create a forecast. Rather than no. 3, all
products will still be sold by
the company. No potential
profit will be lost.
 Action Plan
Task to be Accomplished Timeline
1. Accomplish the forecast to project the future demand of
1 day
the products that ACJ Manufacturing is selling.
1. From the forecast, take-note of the products that shows
unusual increase in demand of customers, and the time 1 day
when these products are in-demand.
1. For future reference, use the forecasting method to
further project the demand of all products ACJ --
Manufacturing is selling.
 Recommendation
• ACJ marketing should assign and provide a forecast based
on ACA no. 4.
• The use of forecasting will be evident if ACJ’s channeling
of resources is effective. whether they are to produce
more product 1 items or moderate the production of
product no. 2.
• The forecast that will be generated will be ACJ’s tool to
maximize the profit they will be able to get from selling
products no. 1 and 2.
 Conclusion

• The use of forecasting is critical mainly for the

manufacturing industry, based on the presented case. The
data that were used showed that to effectively budget
time, and money, there should be a definite forecast used
in order to allocate the budget to where it should be. Also,
these forecast showed that to limit the rise of issues, the
personnel of each company should be allocated carefully
in-order to maximize production.
THANK YOU