Company background

Maize Advanced Agro Refinery (MAAR) Ltd is a manufacturer and supplier of all maize
related products. In Bangladesh, MAAR is a market leader in the maize (corn) local starch
sector. Their production unit uses the wet milling process. They maintain high level of
proficiency and expertise in producing our goods. Maize Advanced Agro Refinery (MAAR) Ltd
is a company that specializes in producing maize (corn) starch and derivatives for a wide range
of industries. The company mainly caters to the textiles, pharmaceutical, food and other
industries. Their major focus is always on their clients' expectations, with a strong emphasis on
product quality and standards. Maize Starch, MAAR's major product, is primarily utilized in the
textile, food and beverage, paper, packaging, and pharmaceutical industries. The gluten flour,
bacteria, and fiber that they produce are widely utilized in animal feed.

Company overview
Khaja Sahadat Ullah (MD of MAAR Ltd) founded this firm with a purpose to be a change-
maker in the industry and a vision to become the market leader and a worldwide player. MAAR
was formed with the intention of being a change agent in the agricultural business. Their goal is
to be the best in the market for all maize-related products and maize-based derivatives. Improve
quality and output through innovating. Reduce waste and save money in the long run. Increase
the value we provide to our customers. Ensure that the shareholder receives excellent returns.
They are also doing one-of-a-kind outstanding efforts on our social and environmental
obligations. Their Habiganj factory uses top-of-the-line production equipment. From obtaining
high-quality raw materials to the most advanced production method to delivering their products
to clients, they strive to reach the best possible quality and environmental standards. MAAR has
taken on a significant amount of Corporate Social Responsibilities by providing assistance to
Habiganj residents. They routinely help and accommodate the poor, and they have a long-term
vision of supporting national goals.

Potential Growth and Opportunities:

MAAR Ltd., the country's largest food and beverage supplier, has a significant presence
in Bangladesh, where it has built a strong relationship of trust and confidence. It is Bangladesh's
leading maize starch manufacturing and distribution company. MAAR is significant for
Bangladesh in terms of local exports. Bangladesh is looking for opportunities for performance
improvement and expansion in the food and beverage industry. Bangladesh has amassed a
significant amount of weight in preparation for a major push in this market. There is competitor
like Varosha Agro Chemical ltd. and Nasir chemical Industry. But they are far from MAAR in
the competition. The food starch market was valued at $18.9 billion in 2018, and is expected to
grow at a CAGR of 5.8% from 2019 to 2026, reaching $29.1 billion by 2026. The way MAAR
limited is thinking about to improve their company by selling Maize starch within next 10 years
they will reach to the top of the global manufacturer and supplier. The dedication to initiative
and reinvention shows that they have an exciting future ahead of them.

Opportunities:
Though a serious situation going on like Covid-19 still Their product demand is high. They don’t
have to face any difficulties because of pandemic. Their product demand was high in this
situation so that company gets highly benefited by continuing their production. Maize starch is
one of the important products in food beverage so there is no alternative on it. Though they are
on top in Bangladesh they can go further my obtaining new opportunities. There are some
opportunities they can take-

1. Increase production to fulfil their demand,

2. They can start exporting their product outside country,
3. Possibilities for increasing productivity
4. Capacity expansion.
Forecasting Strategies of MAAR LTD.
Forecasting is a process in management to support decision making. Ensuring sales reps maintain
accurate data. Making the sales force accountable for forecast accuracy. They process the overall
estimation in unknown future situations. Before they become operational, forecasting systems
are often preceded by a pilot project to fine-tune outputs and consolidate the data collection
systems. As the demand grows, they change their method a bit by bit. The forecast model which
are using right now and which can be useful for MAAR is given below-

Sales Forecasting:

 They estimate the demand for maize starch based on market research. MAAR Limited
takes over the manufacturing facilities based on previous data and then begins
production.
 They have a maximum capacity of 1000 metric tons. They attempt to deliver before time
so that they may create more and the capacity does not exceed its limit.
 They have maize starch only so all the time it produces one product, so sales forecast is
always the same.

Naive forecasting:

Estimation method in which the previous period's actuals are utilized as the forecast for current
period without any adjustments or attempts to determine causative variables. It is mainly used to
compare projections provided by more advanced methods. MAAR limited used to do this
forecasting method before they starting their forecast for new year.

Moving average method:

MAAR Ltd. used moving average technique to predict demand for next 3 months. A moving
average is a method for determining the overall trends in a data collection by taking the average
of any subset of numbers. For predicting long-term trends, the moving average is highly
effective. Though they have their demand on monthly basis they can predict how much moving
average demand will be in next 3 months.

They contract the client and set meetings and upon all the discussion, they do apply their strategy
and how they will proceed. When observing supplier choices, they plan to consider how long the
provider has been in business. As a wholesale corn provider has been operating for several years,
it presumably means that it provides excellent client service. And the sells high quality product,
and ensures products are delivered. They make sure that the provider is ready to fulfill the orders
on an everyday basis. This is very vital as maar is a larger farm with a lot of stock to feed and
always need to place very large orders.

In depth analysis of forecasting by Using approximate real-life Data:

MAAR restricted is based on the forecasting of time series models. For their Maize Starch
production, they use the historical forecasting approach, which is also known as the moving
average method (collected from online interviews). As a result, the following is an estimate of
MAAR Limited’s 12-month sales/demand in 2020:

Months Actual sales(Metric ton) 3 month moving Average

January 750 -
February 710 -
March 590 -
April 780 683.33
May 685 693.33
June 720 685
July 670 728.33
August 690 691.66
September 730 693.33
October 700 696.66
November 675 706.56
December 760 701.67

Inventory Management of MAAR

Their ordering, stocking, storing is different from other businesses. As the y don’t have so much
competitors much, and they are providing all the products as per demand. So they don’t have to
worry about the stock problem. If their target is 100 tons of product then they full fill it and they
don’t have to wait as well. They instantly sale them. Because all of the goods are preorder. And
they just deliver them from one point to another. That’s why they don’t need to worry about their
storage and stocking the product. It’s a on demand production. Some of their inventory
techniques are Over shipping, Buffer inventory. They try to fulfil their demand as always so,
they do over shipping for raw materials and make a stock of their raw materials. Because they
have to produce huge amount of product as demand is high on maize starch.

Aggregate Planning of MAAR ltd

MAAR's goal is to generate maize starch at a reasonable cost. As a result, they organize their
whole activities in order to establish a rough timeline. Target sales forecasts, production levels,
inventory levels, and customer backlogs are all often included in the overall plan.

So, in MAAR, operations and aggregate planning are handled by a higher-level operations
planning team, which is overseen by operation managers and supervisors. In most cases, this
planning is focused with balancing output supply and demand over a medium time horizon, often
3 to 18 months.

MAAR ltd. absorbs demand by analyzing forecasts provided by operations managers. Typically,
they use moving average forecasting and do a demand analysis beforehand. They grow 30
percent more maize than they require ahead of time.

Demand Planning and Fulfillment Strategies of MAAR

The Order Management System:

MAAR's orders are generally structured in such a way that manufacturing begins when an order
is received, and raw materials are purchased every month prior to the next month's production.

Order fulfillment Strategy:

Spread Inventory Strategically Across MAAR LTD. Because they only ships from two locations,
many of their clients will have to wait a long time to get their goods. However, when they
receive a large influx of orders at the end of the year, this longer wait time may become
undesirable to their consumers.

They may more precisely anticipate future sales across their company and pick the optimum
areas to keep goods by studying consumer purchase history, whether it's a regional warehouse or
Maize starch store. As a consequence, regardless of where their consumers want their items sent,
they can distribute inventory faster and more cost-effectively.
Material Requirement Planning of MAAR
ERP is used by the majority of large corporations for production and distribution. MRP, or
Materials Requirements Planning, is one of the most commonly used methods for production
scheduling and inventory control. MRP displays all supply and demand information and
identifies all items that must be bought or manufactured in order to maintain minimum inventory
levels. As a result, it's apparent how critical MRP is. It guarantees that sufficient supplies and
resources are available when they are required.

In Material Requirement planning they have Material plan, inventory, reporting, purchase order,
work order.

Material Plan: To manufacture maize starch, they'll need corn, 25 different chemicals, and a few
other items, but they planned ahead of time before the material ran out, so they could buy before
the supply ran out. Corn is a raw commodity that is brought straight from farmers. So they
acquire a minimum of 300 metric tons since not all of the items will be flawless; some may have
issues or be of poor quality. Despite the fact that it is a new product.

Inventory: They don't keep large quantities of stuff because it's fresh and won't last more than a
month or two. Finish goods can be held for up to two months, but chemicals and raw ingredients
cannot be stored since they may harm other products and machinery.