1.

What are the key issues and their implications that are
highlighted in the case ? ( Both Financial and non-financial )

Key Issues and their implications

1. A rolling tractor demand forecast for the current month plus two
months in the future was provided and this forecast was used to
manufacture tractors and to enable placing parts supply orders in
advance.
2. The tractor availability at the stockyards was a key concern as
the tractor sales were seasonal with a minus 20 percent to plus
40 percent change.
3. MMFD had approximately 197 tractor models the top 25 of which
accounted for 73 percent of sales.
4. The present dealer stock had an accuracy level of 63 percent for
fulfilling sales demands ,the same had to be increased.
5. Mid-month revisions in the forecast plan was frequent and this
used to lead to inter-stockyard transfer of tractors which
accounted for 6.7 percent of the total annual sales volume with
an average transportation cost of $ 145 per tractor.
6. Even managing all these the dealers were forced to sell the
alternate models to the customers at discounted price due to the
lack of availability of the desired model which was
predominantly the top 25% models, this led to the high level of
dissatisfaction among the dealers.