8. Toffee Inc.: Demand planning for chocolate bars

The inventory manager of sales and distribution for Toffee Inc., a confectionery company, had just concluded a meeting with all relevant personnel. The meeting had not been entirely positive. The words of the production manager still echoed in his ears: "If the ingredient inventory is not re-examined and reworked to the firm's advantage then [soon] the final products based on these ingredients will cease to yield the kind of profits that the firm expects." The inventory manager needed to do a comprehensive forecasting and inventory management plan with a view to minimize the cost of managing the supply chain by judicious use of resources, better forecasting, and improvement in the ingredient inventory purchasing and management systems.

Suggested questions

Q1: What kind of sales demand is Toffee Inc. looking at? Which forecasting method is best suited to the situation that the company is in?

Q2: How are seasonal forecasting factors computed?

The rest of the case:

https://drive.google.com/file/d/1bWcMnnJfLs4-i_dh-cQGAwGarMKDVjyT/view?usp=sharing