Is the present system workable, and should Greyson be given the authorization to hire two new clerks?
The answer is no, because examining the data Bucky has collected, it is clear that the demand for some of the components is increasing while at the same time the demand for some others is decreasing. A systematic approach is required to deal with this inventory pattern. Mr. Greyson wants to implement the card system. Adding two more people would simply further complicate the existing out-of-date inventory system. At the current average salary package of $50,000 each person, it would cost the company $100,000 to hire two more people. That is an expensive proposition for small sized Matrix. 2. How important is a forecasting system for Matrix Company? Design a simple forecasting system. Use the system to forecast for 1977? Forecasts are vital to every company, and for every significant management decision. It is the basis of long-term planning. Forecasts provide the basis for budgetary planning and cost control. Marketing relies on sales forecasting to plan new products, compensate sales
