Babcock and Wilcox Consolidated Forecasting Case Solution

Case Solution

The marketing services manager at Babcock and Wilcox had determined that: Despite being quite sophisticated inside our analysis, we are under acquiring the data we would like for that shop-load planning and organizing. Our sales predictions also drive our accounting and business forecasts, so we must improve how you develop our fundamental forecasts. How do Babcock and Wilcox improve its predicting? (A Microsoft Stick out computer file could be acquired for use using this case, product 7A98E023.)

Excel Calculations

·         Year

·         Qtr        

·         P1          

·         P2          

·         USA $

·         Value

·         Shop

·         Hours   

·         Expected

·         Revenue             

·         ER/SH

Questions Covered

1.       How is B&W using probabilities in their forecasting?

2.       How might they quantify the uncertainty in their forecasts?

3.       How might they estimate their business risk?

4.       What business can B&W expect to win in the first quarter of 1988?

5.       In the same quarter, for what range of business activity should they plan?

6.       What are the key assumptions in the P1 and P2 that might account for what you see?

7.       What might you suggest would work better?