Baker and Sons Inc. is into the wholesale business of bakery items operating with a centralized kitchen model. The current CFO of the company has just retired, and you have been given the new charge. As a CFO first thing you do is go through the financing and investment activities of Baker and Sons. In your review you noticed that as per current style of management Baker and Sons shows a lot of expiration cost in its finished good inventory. Upon further investigation you find that the company has an operating style of mass production round the clock as it is believed to have a lowering effect on cost. Upon your discussion with the MD and CEO of the company on the importance of demand forecasting they ask you to put forth your points in front of the board. As a CFO you must explain how an efficient demand forecasting can not only help Baker and Sons save on unnecessary expenses but also help finance future expansions and reduce the debt burden
Q1. Baker and Sons Inc. is into the wholesale business of bakery items operating with a centralized kitchen model. The current CFO of the company has just retired, and you have been
given the new charge. As a CFO first thing you do is go through the financing and investment activities of Baker and Sons. In your review you noticed that as per current style of management Baker and Sons shows a lot of expiration cost in its finished good inventory. Upon further investigation you find that the company has an operating style of mass production round the clock as it is believed to have a lowering effect on cost. Upon your discussion with the MD and CEO of the company on the importance of demand
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