Burns Auto Case Study

In this essay, the author

• Explains that burns auto corporation is not exempt from unexpected changes or shifts in that industry. many factors drive the automobile market fuel prices, the economy, and family sizes.
• Explains that burns corporation has experienced an increase in their inventory, which is becoming costly and cutting into profits. as inventory grows due to misalignment of sales and merchandise ordering, the need for more accurate forecasting models.
• Explains that thomas burns is the owner and wants to take on a new method of managing inventories and forecasting sales, especially now that manufacturers have mandated the "turn and earn" approach.

• Explains that burns auto corporation is not exempt from unexpected changes or shifts in that industry. many factors drive the automobile market fuel prices, the economy, and family sizes.
• Explains that burns corporation has experienced an increase in their inventory, which is becoming costly and cutting into profits. as inventory grows due to misalignment of sales and merchandise ordering, the need for more accurate forecasting models.
• Explains that thomas burns is the owner and wants to take on a new method of managing inventories and forecasting sales, especially now that manufacturers have mandated the "turn and earn" approach.
• Opines that burns has the opportunity to set a standard in analysis, which should lead to more solid future.
• Explains that inventory costs have increased from $300 million to $360 million, directly related to sales forecasting. an analysis model is necessary, but the million-dollar question is which one to go with.
• Opines that the end state would be one where burns is successful in predicting future sales. the chosen analysis model will maintain merchandise available for consumers and keep finance charges below the $300 million level.
• Explains that there are several alternative solutions to this problem. burns can go with thomas' idea of hiring peter reardon and having him come up with a model to predict the sales forecasting.
• Opines that peter reardon's plan will work for burns, and that the sales programs will be a good idea.
• Opines that burns faces a huge risk if their inventory problem isn't resolved. without resolving the problem, the cost of maintaining an inventory that's not selling will cost more and more.
• Opines that burns will need to take careful steps in implementing this plan. the model needs to be implemented at the dealership level and the administrative level will be responsible for monitoring the model.
• Opines that burns auto corporation's inventory costs are too high and fluctuate on a month-to-month basis. the teamwork skills at the company are lacking.
• Cites price war: ford fires back with "keep it simple" program.
• Explains that richard settle is having difficulty accepting change of policy, and thomas burns has looked at hiring peter for a long-term overhaul, launching with sales forecasting.
• Explains that burns auto corporation needs to forecast sales accurately to keep new cars in their inventory. daimler chrysler had to find a way to increase their sales for the last half of 2006.
• Opines that the optimal solution for burns corporation is to work as a team, incorporating all ideas presented to develop an accurate model that will accurately predict future sales and demands.