Harman Food’s had difficulty in forecasting sales for their main product named “Treat”. The problem presented a domino effect on other parts of the company like advertising, expenditures, and budget controls. Throughout the company Brand managers prepared brand’s budget on monthly quarterly and annual forecast. Intern these budgets went to MacIntyre as official budget, and became an element of the production schedule.

After evaluating all the steps and effects the budget forecasting had, management dived into the influential factors that affect sales. For example season trend alerts like decrease in sales in November and December due to low level of end of year inventory. As well as less sales, due to summer plant shut downs. These factor are all effecting the demand and shipment of Treat.

The main problem identified was that end of year sales increased due to buildup of inventory, and the reaction to the buildup was as late as two months.

We believe that Harman Food’s faces the same challenges that many manufacturers, distributors, wholesales, and retailers due. When manufacturing products there seems to always be tug of war element between production and sales. Pull to strong on one side and the supply demand curve shifts and the same for the other side. The important thing is to identify product and market variables. The variable will be consistent, as the product or market can fluctuate. This will allow for a steady balance. The manager did a good job of identifying all the steps for the product, as well as digging deep into the layers of the forecasting affects and redlining the elements that shift supply and demand. This is the primary step in creating a balance between forecasting and budgeting. Knowing your product trends and market fluxions will helps fill in the blanks for forecasting and budgeting. Aside from this, creating a product and market