Roberts deploys Sharon Place, the consultant to investigate the problem mainly focusing on its high-volume product ‘bow rake’.
Place wants to know how Yankee plans bow rake production. According to the information given by Phil Stanton, the important faculty of marketing, Yankee does not have a formal method of production planning. The production forecasting depends on the information given by the marketing section. However, the forecasts are usually inflated and therefore, Stanton usually reduces the forecast by 10 percent. According to Stanton, the production will be cost effective only if the forecasts are good. However, it often flaws due to the inaccurate information given by the marketers. Ron Adams, the marketing manager has a different opinion regarding the causes of late delivery. He says that he prepares monthly forecasts relying on various factors like the changes in the economy, the previous year’s shortage, and the feedback collected from managers from various sales regions. He further complains that despite the whole efforts, they still fail to avoid customer