Running Header: FRANKLIN FAN COMPANY 1

FRANKLIN FAN COMPANY

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Introduction

Franklin Fan Company being a manufacturer and distributor of window fans is facing a concern

associated with the demand for the product. An appropriate forecasting method has to be adopted

by the company.

The problem with respect to Franklin Fan Company is to bring about an enhanced forecasting for

the materials. Well identified new materials required for the fans. The rush orders need to be well

planned as the demand for the production of fans has to be met. The new material requirement

plan has to be well coordinated (Kersten, W., 2011).

Analysis

While managing the forecasting for the fan, marketing is the key to the determination of forecast

for the fans at Franklin, The basis is that of the unplanned demand anticipated for the months of

the year. The changes in the current forecasting system would involve the understanding of the

need of the customer and the systematic procedure with the appropriate analysis done for the

market. The forecasting method deployed is the market analysis based on the data collected from

the customers (Pilinkiene, V., 2008).

Conclusion

Two options that are proposed for Franklin Fan Company include the enhancement of the

forecasting system and getting to know well in hand about the demand so that efficient planning
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can be deployed. The second alternative to know well in hand about the demand so that efficient

planning can be deployed and can be sought as a good solution

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References

Kersten, W. (2011). International Supply Chain Management and Collaboration Practices.

Books on Demand

Pilinkiene, V. (2008). “Selection of Market Demand Forecast Methods- Criteria & Application”,
Engineering Economics, Vol. 58 (3), pp. 19 - 25
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Annexure A – Forecast For Window Fans

Month 2015
1 64,500
2 32250
3 47500
4 34000
5 39000
6 45000
7 52000
8 39000
9 41000
10 32000
11 59000
12 65000
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Annexure B – 5-Step Critical Thinking Decision Making Model (Franklin Fan Company)

Step 1: Identify the problem(s) and uncertainties.

What exactly is the problem..

The problem with respect to Franklin Fan Company is to bring about an enhanced forecasting for
the materials. The new material requirement plan has to be well coordinated
The problem is this …

Well identified new materials required for the fans. The rush orders need to be well planned as
the demand for the production of fans has to be met.
This is an important problem because…

A situation can arise wherein the production of the fans can be delayed and the demand of
customers are not being met
The key question(s) that needs to be answered to solve this problem is…

1. What are the options that are available with organization so that can choose from to have

a better material requirement plan in place?

2. Whether the organization need to extend the MRP outputs?

Step 2: Obtain information.

The following information is needed to answer this question…

The entry in the priority is based on the committed delivery to the customers. scheduled receipts
along with the lead time is crucial
Some important assumptions I am using in my thinking are…

Some of the key assumptions being made is associated with the exploration of the problem along
with forecasting of Franklin Fan Company .

The points of view relevant to this problem belong to…

The customers and other stakeholders who are associated to the Franklin Fan Company
Note: Remember to view the information you have obtained for potential bias. This is from the

perspective of your own bias to the research and the bias of the authors who compiled the data
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and the research you gathered. In other words, do not discount the importance of other’s data

because of your own bias (is).

Step 3: Make predictions about the future.

If this problem gets solved, some important implications are…

The implications in case the problem identified is address include the following,
1. The enhanced forecasting would be able to assist the company

2. The demand of the fans relevant to the promised orders can be met promptly

If this problem does not get solved, some important implications are…

The implications in case the problem identified is not addressed include the following,
Probability of the business lost to other brands in market

The potential alternative solutions to solve the problem are…

The following options are available to the company given the nature of the problem identified
1) Enhancement of the forecasting system

2) Getting to know well in hand about the demand so that efficient planning can be

deployed

Note: if the problem is one-dimensional, there may be just one correct solution.

Step 4: Make decisions by choosing among alternatives.

What is the best solution and why…

1) As described in the earlier step, the two options proposed are relevant to address the
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problem. However the second alternative to know well in hand about the demand so that

efficient planning can be deployed and can be sought as a good solution

Step 5: Implement the decision, evaluate performance, and learn.

The implementation of the solution along with the demand consideration linked to the

forecasting of fans and the promptness associated is crucial. .