Stock Control and Forecasting Techniques Used by Cadbury

Stock Control and Forecasting Techniques Used by Cadbury

Length: 823 words (2.4 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
I am going to relate the stock control and forecasting techniques that
Cadbury use.

C3: The relationship between stock control and forecasting techniques

Used in the production methods employed

For this part of my assignment I am going to relate the stock control
and forecasting techniques that Cadbury use with the production
methods that Cadbury use.

When Cadbury buy stock, it has to be considered carefully by Cadbury,
the correct quantities of the stock should be purchased to reduce the
amount of wastage should be controlled so that loses are controlled.

Cadbury purchases its main ingredient cocoa beans from Ghana, which is
then taken to marlbrook where the cocoa beans are cleaned and
grounded. After this they are imported to the UK in the Bourn Ville
factory where the production of the product is completed.

Cadbury knows how much stock that has to be purchased due to the time
series analysis that is done. The time series analysis shows
historical data which Cadbury use to analyse and predict the future
trends of the sales of products.

This is the reason for why Cadbury needs to ensure that the time
series analysis is accurate and up to date so that Cadbury can produce
enough products so that there is no wastage or shortage of products,
this is also meeting the customers demands. If Cadbury decided to
purchase more stock than needed then Cadbury would be overspending its
money and the wastage figure is likely to increase because more
products than needed are being produced and it would be wastage
because if the trend continues that the time series analysis shows
then customers are less likely to purchase more products (Cadbury
would be purchasing more products than customers would purchase).

Retail pricing

Once the product is made, Cadbury have to price the product at a
competitive price for it to be sold at retail shops. The price of the
product has to be competitive and stay stable so that customers will
purchase the product without considering the cost as a drawback about
the product.

For example if Cadbury decided to lower the price of the product by
25% then the sale trends are likely to change and the amount of stock
purchased has to be increased as well, because if the price of the
product decreases then it is very likely that customers are going to
be purchasing the product more often during the set time period that
the time series analysis covers. However if Cadbury decided to
increase the price of the product then it is very likely that
customers are less likely to purchase the product hence less stock
would be needed because Cadbury would have to produce less products.

How to Cite this Page

MLA Citation:
"Stock Control and Forecasting Techniques Used by Cadbury." 26 Jan 2020

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Forecasting Methodology Essay

- Forecasting Methodology Forecasting is an integral part in planning the financial future of any business and allows the company to consider probabilities of current and future trends using existing data and facts. Forecasts are vital to every business organization and for every significant management decision. Forecasting, according to Armstrong (2001), is the basis of corporate long-run planning. Many times, this unique approach is used not only to provide a baseline, but also to offer a prediction into the corporation's future....   [tags: Business Forecasting ]

Research Papers
1444 words (4.1 pages)

Methods of Technology Forecasting and Analysis for Firms Essay

- Methods of Technology Forecasting and Analysis for Firms There is a great need for firms to consider the future. Given the rate of technological innovation and the scope and impact of disruptive technologies, if firms are to predict and exploit their future markets, the role for technological forecasting and analysis is likely to become more prominent. In this paper, two methods (Delphi & Scenario Writing) will be examined in terms of their relative merits and use. The attention will then turn to the nature of use within the firm of both techniques in a technological forecasting context....   [tags: Papers]

Research Papers
2454 words (7 pages)

Forecasting Financial Markets to Bring Fortune Essay

- ... Technical analysis can be done for stocks, futures and commodities, fixed-income securities, forex, etc. A chartist analyzes price charts only, while the technical analyst studies technical indicators derived from price and volume changes. Technical analysts examine the price and volume action of the financial markets instead of the fundamental factors. The technical analyst follows the efficient market hypothesis which states that all the relevant market information is reflected in the price with the exception of shocking news such as natural disasters or acts of God....   [tags: analysis, trends, profit]

Research Papers
807 words (2.3 pages)

Case Study : Integrated Operations Planning Essay

- Chapter 6: Integrated Operations Planning Study Questions 1. Improved supply chain visibility provides present information about location and status of inventory and resources. The information concerning these available resources can also be calculated. However, this isn’t any easy job. Supply chain visibility requires remarkable supervision to take care of emphasizing the need for resources to prevent potential issues. If there is limited visibility when it comes to in-transit inventory and their ETA, it can result in ambiguity regarding product availability....   [tags: Forecasting, Management, Supply chain management]

Research Papers
896 words (2.6 pages)

Essay on Price Forecasting For Used Cars

- TITLE: Price forecasting for used Cars. NAME(S): Rishabh Rana 1459503 ABSTRACT The number of used vehicle market continues to grow in every part of world including New Zealand, with an increase of 15% in the sales of used as well as imported used cars than last year. The task is to create a system software that allows us to predict the price for cars based on several attributes such as car’s condition, engine, current market value, background details, mileage, model, and make year, etc. The work is how to make machine so that it can learn those attributes and generates the price of car using them....   [tags: Regression analysis, Forecasting]

Research Papers
1013 words (2.9 pages)

Sheet Metal Forming: Springback Control Essay

- I. SPRING BACK CONTROL AND ACTIVE CONTROLS OF SPRINGBACK Abstract The forming of sheet metal requires an understanding of a wide range of technical knowledge, the manufacturing application criterion and the interaction of processing and the material's properties. One of the major causes of inconsistent parts is springback, which Hu, Marciniack and Duncan define as the elastic strain recovery in the material after the tooling is removed (2002). This paper delineates an experiment carried out by Vikram Viswanathan (Northwestern University), Brad Kinsey (University of New Hampshire) and Jian Cao (Northwestern University) titled "Experimental Implementation of Neural Network Springback Control...   [tags: Engineering]

Research Papers
1708 words (4.9 pages)

Forecasting Methods for Companies Essay

- Abstract Companies forecast in different ways and for different reasons. For the sake of my current employer, some of the reasons to why they forecast is to ensure that there are plenty of cellular phones in stock or even to make sure that the company has enough numbers to assign to customers when they purchase wireless service from us. The following paper will compare and contrast various forecasting methods while also elaborating on the method that my current employer use for forecasting sales and mobile identification number (MDN) requirements....   [tags: Compare Contrast Statistics Forecasting]

Research Papers
1449 words (4.1 pages)

Forecasting Methods Essay

- Introduction All businesses are confronted with the general problem of having to make decisions under conditions of uncertainty. Management must understand the nature of demand and competition in order to develop realistic business plans, determine a strategic vision for the organization, and determine technology and infrastructure needs. To address these challenges, forecasting is used. According to Makridakis (1989), forecasting future events can be characterized as the search for answers to one or more of the following questions: „X What new economic, technical, or sociological forces is the organization likely to face in both the near and long term....   [tags: Business Analysis Forecasting]

Free Essays
1651 words (4.7 pages)

Forecasting Methods Essay

- Forecasting Methods Forecasting demand is not an easy task. The market is constantly changing and it makes the product demand difficult to predict. Therefore, there is not such as perfect product forecast of what customers will need in the future. However, there are several methods that help attenuating the uncertainty of forecasting demand. Since, the forecast methods or techniques differ from one another; the objective is to compare and contrast several forecasting methods, and how they are used by organizations to the best advantage under conditions of uncertainty....   [tags: Business Market Forecasting]

Free Essays
901 words (2.6 pages)

Forecasting Essay

- Forecasting In my assignment I will forecast the third and the fourth quarter revenues of Consolidated Edison Company for the year 1996. The company’s main fields are electricity, gas and steam supplying. In the case of every company it is important to forecast the future revenues to be able to calculate the company’s expected profits. That is the situation in this case as well, so I must do my job as perfect as I can. I got the past eleven years data, from which I can analyse the whole situation and which I can use to predict for the future....   [tags: essays papers]

Free Essays
1281 words (3.7 pages)

Related Searches

Employing staff

The staffs that the manager at Cadbury employs needs to have
experience about the job role they are employed for. Employees need to
adapt to their job role quickly so that they can work efficiently. At
Cadbury it is vital that customers receive an exceptional service, for
this the staff need to know about the objectives that have to meet and
the standards that have to be met. If unsuitable members of staff are
employed it is likely that they will produce insufficient goods that
will not meet the customers demands.


Security is a vital part of any business. Premises can be made secure
by having a burglar alarm, security cameras and having shutters for
when the Cadbury factory closes. Security is vital for both the
employees of Cadbury and the products that are being produced, because
if either one of them doesn’t have enough security then Cadbury would
make a loss. For example if products/stock got stolen or vandalised
then Cadbury would make a loss because of the amount of time and money
that was spent in producing those products, however if an employee got
harmed due to a violent burglar then Cadbury would make a loss because
that employee helped Cadbury reach the production targets etc, and it
may be hard to find a replacement for the person because of the skills
that are needed for that job role.


Forecasting gives Cadbury a prediction of the selling trends of
products. To make the forecast, the trend line must be accurate. That
is the reason for why forecasting products for Cadbury is vital, this
relates to stock control because forecasting helps Cadbury to predict
how much stock is needed to produce the required amount of products.

Problems with forecasts

The accuracy of Cadburys forecast depends on many factors below are
the most common:

- Will the external environment remain the same?

Will there be significant changes in the economic, technical and
social environment? For example if customers all started to earn more
maybe this would change their lifestyle and encourage them to buy more
luxury products and chocolate is a luxury item.

- Will the external environment remain stable?

Will Cadbury keep the same objectives and follow the same polices?
Return to