A CAT Corp Forecasting Case Solution

1. Using the various methods and models available for forecasting that we have covered thus far, suggest a way forward for A-CAT.

For A-CAT to move forward with forecasting techniques that should minimize their problems like over-stocking, understocking, dissatisfied customers, and managing inventory levels, it is important for the company to take immediate action. Improvements in the forecasting of voltage stabilizers for A-CAT, various factors can be considered into account, which can help the company to provide sufficient insights and feedback. Such factors are mentioned below:

Market research: it will provide enough insights about ongoing trends in the market that would help A-CAT to mold its voltage stabilizer according to customers' requirements. It can also help the company to identify other external factors like population growth, and economic condition impacts on customers. These insights would help A-CAT to move ahead in their forecasting techniques with a much better approach.

Collaboration within the departments is another way to move forward in the future. A-CAT should involve and encourage feedback and suggestions from all the departments in brain-storming activities. Sales, Operations and production departments may have many valuable insights to share, which they may have observed over the period of time by surviving in the industry.

A-CAT also has previous trends and data on hand, which it can consider making sound decisions. The Operations head, Shirish Ratnaparkhi, should take the data provided by the Vice President into account and gather more analysis and present feedback based on the data he would observe. Hence, considering data and trends into account is as important when deciding a way forward as any other factor.

Another way to move forward is to take into account competitors’ actions and trends into account. As A-CAT has observed a decrease in its voltage stabilizer sales, it needs to dig deep into the factors that led to the decline before making any further calls, as this decline may only be because of the company's out-of-industry alignment and practices. 

All these factors must be taken into account as they will provide the platform for the company to move forwards while making any strategic moves and decisions. 

2. Which method is best suited and gives the best possible results? Why?

The best method to forecast for any company depends on many variables rather than one. For A-CAT to obtain the best possible results, a few mentioned approaches below may help the company. A few of these approaches may give optimal results, whether used collectively or independently, are as follows: