Running Head: CAPACITY AND FORECASTING Capacity and Forecasting at Green Valley Bakers Name of the Writer Name of the Institution Capacity and Forecasting at Green Valley Bakers Introduction We now return to Green Valley Bakers in California and seek to discuss the importance of capacity utilization and financial, sales, materials and production forecasting for the business…
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It takes a lot of time, effort and skills to plan out the start of operations, from where the inventory will come, how and when sales will be made and at what margins, so that some profit is left over to compensate the businessman and other stakeholders of the business, if there are any, after the costs and expenses of the bakery have been paid out. Forecasting must also take into account the current and future environment as regards legal, technological, social and other phenomena such as changes in Government policy regarding taxation on bakeries, prices of inventory items, changing tastes of consumers and improvements in baking technology. We will consider all these as we evolve a strategy for capacity utilization and demand and sales forecasting at Green Valley Bakers. Discussion Capacity utilization has been one of the main concerns of entrepreneurs and industrialists right from the very beginning of organized business enterprise. In fact the start of the Industrial Revolution saw much of the population of villages move to the cities, lured by the prospects of gainful employment and higher and more consistent wages, thereby leading to a better lifestyle and social progress. Imagine their predicament when they were forced to move into often cramped and squalid living quarters, eating meager rations and toiling long hours in factories and mills that sought only to gain the most advantage from this situation. It was only after the refusal of workers in Chicago to continue to work under these appalling conditions that the world has moved towards respecting the rights of the workers. Even the economists of old regarded Labor as but a factor of production. As regards capacity, J.B Say remarked that Supply would create its own demand. And the production concept in marketing so popular in the 1950s enunciated that if one built a better mousetrap (meaning product), people would flock to your door to buy it. Even today there is a debate among economists as to whether Full Employment or Partial Unemployment is better for the economy. The Marxists would say that nothing has really changed, in this class-ridden society; it is just the capitalist or rich class or bourgeoisie taking advantage of the proletariat or worker class, as it always has. Capacity utilization and forecasting trends are as important for a bakery as an airline or engine manufacturer (Croft, 2010). In the world of accounting, costing techniques have been applied to industrial production to determine the cost per unit of production. Indeed, there have been instituted wage rates per unit of output produced by the worker. In other words, the total cost of a product has been broken up into components of direct materials, direct labor and factory overheads (meaning other costs that cannot be directly apportioned to a product). Thus an amalgam of these costs divided by the number of units products over a specific period of time give a standard cost per unit for a particular batch of bread. This is much like the batch manufacturing processes at pharmaceutical industries and Green Valley Bakers could also adopt this method of identifying production of different batches of bread. It would be invaluable in also judging whether the best-if-used-by-date for a particular unit had passed or not. As explained in earlier assignments, the maximum shelf life of breads at normal room temperature tended to
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This research will begin with the statement that the daily activities of a business may seem to go on like clockwork, but it would be surprising to note that behind every activity and process like a lot of thinking, experimentation and even trial and error that has resulted in perfecting the present settings that are visible across the business.
According to the research findings, the Green Valley Bakers Company was started around ten years ago and was the brainchild of Raiz Van Dough, a third generation Dutch baker. His father had migrated to the USA following the Second World War and it was his dream to carry on his father’s and grandfather’s legacy.
Capacity utilization on the other hand is the extent to which an enterprise uses its installed production capacity. It is the efficiency with which the factors of production are being used (Wikipedia 2011b). EMC may experience capacity problems in future and so it is critical that a decision be made soon on how to resolve such problems, should they occur in future.
The author states that Green Valley Bakers can not only take full advantage of increased business but also try to reach out to more customers in this season. An additional shift can be instituted if needed to keep up with the increased demand. Error proofing the bread making process is another way that the bakery can make an improvement in its quality.
During the period of war, the Continental army had lost a series of wars to the British army. To this end, winter season fast approaching and both armies put a break on the wars to look for a place to camp.
Coccidioidomycosis, or valley fever, is a disease that normally affects one’s lungs. Coccidioides cause the illness, which is a fungus. A hardy strain of this fungus has the ability to live for long under harsh conditions like drought and extreme heat and cold (Williams 41).
Economic forecasting is an important decision-making tool for governments and businesses as they project on the financial strategy and policy. Annualbudgeting and forecasting cannot keep pace with today’s vibrant business situation because the information produced is irrelevant andoutdated.
This research is being carried out to evaluate and present it is a good and prudent task for every business owner or its top management to spend some time at regular intervals looking at the current and future business prospects and planning ahead to take advantage of the opportunities and to avoid or minimize the threats.