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A-Cat Corporation


Transformer requirements will be analyzed at A-Cat Corporation, a refrigerator production company.  The operations team in charge of the production facility has been asked to determine how many transformers will be needed to meet demands accurately.  In the past, they have had issues correctly forecasting this number.  The amounts calculated have either exceeded the amount necessary or have fallen short.  Miscalculating has led to negative results coming from over expenditures or missed sales (ND, QSO 510).

The president of the company has delegated the vice president of operations to provide the sales team with the mean number of transformers needed to produce the voltage regulators to meet demand requirements. The VP has asked the head of operations to create a report that analyzes the necessary data.  From this report, recommendations will be provided.  A simplified report will be issued to employees to understand the data better. (ND, QSO 510).

Some quantifiable factors may affect operational performance. The price of the regulators could be changing the operational process. A-cat is concerned that various ordering patterns may be resulting in suppliers changing prices on them. Also, the number of transformers required for voltage regulators per a period could influence performance. Transformer requirements are measured in units and refrigerator sales. Data from past years are being used to forecast current demand of voltage regulators (ND, QSO 510). The fact that old data is being used is affecting operational process control. Because processes and items manufactured overtime change, old data is less valuable to forecasting present day trends.  The value of the equipment is another factor to be considered.  Products could be designed and made in a manner that results in either shorter or longer lifespan.

Problem statement.

 The operations manager needs to evaluate the quality of transformers in use as well as forecast future transformer needs based on some refrigerators built to control inventory better. The who is the operations manager; the what is transformer QC and forecasting and the why is to manage inventory (Chris, 2015) better. In the past stock has been too high or too low and this has caused the A-Cat Corporation to lose profits. The goal now is to analyze past quality and demand data to forecast today’s needs better.

Data handling and analyzation is a significant and recurring issue at A Cat Corporation. 

The key part of the A cat organization operational front is to get the precise estimate the demand of voltage regulators (ND, QSO,510). If the voltage regulators expect very high or too low than the original/required number of units, then the corporation is going to pay a hefty price regarding inventory costs for failing to meet production levels/opportunity cost. 

Many things need to be considered to obtain accurate data on supply and demand of the regulators. 

It is important to keep an up to date log of sales numbers, regulators, transformers, quality of the products.  This information should be updated regularly as new information is provided.  This report will allow management to see how the company is doing and where the holes are. 

Data from past periods are being used to forecast current demand of voltage regulators (ND, QSO 510). The fact that old data is being used is affecting operational process control. Because processes and items manufactured overtime change, old data is less valuable to forecasting present day trends.

Here the major problem in the cat A corporation is using the old data for estimating the demand of voltage regulators. Next, the critical information is not sharing among the various departments. Quality control department is not updated by the latest descriptive statistics.

There are number gaps in the operational front in the cat A corporation. The functional team has to provide timely estimates and share with the relevant departments like sales team and production team.  The descriptive statistics/ quality parameters should be communicated on the timely basis to quality/production control team.

A corporation should update data so that it can be validated.  Tracking is nearly impossible if accurate information isn’t provided. 

The following need to be remedied to keep data consistent.

  • Data not being updated in real time.
  • Utilization of old information
  • Failure to catch the trend
  • Critical data not being shared with all vested parties
  • Not identifying the key factors for estimates and understanding the relationship among them
  • Analyzing statistically and implementation of new/updated strategies.

The operational manager needs to forecast the demand of transformers based on the sales of the refrigerators.

Since we forecast the demand using sales of the refrigerators, plot the sales of the refrigerators on the x-axis and transform requirements on the y-axis.

Chris. (2009, March 18). How to Write a Problem Statement. Ceptara. Retrieved from

Kalla, Siddharth. (ND). Statistical Variance. Explorable. Retrieved from

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