Indian Milk Distribution Company Forecasting Costs

How can a milk distribution company use cost forecasting to help manage significant volume and price discrepancies?
Sudhakar Balachandran, William Holden  | Winter 2008
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An executive at Indiana Milk Distribution Company, is charged to find out why his company's actual sales have varied from its 13-week cash flow forecast. Large discrepancies were discovered in both price and volume, as customers stocked up on milk after the US president issued high-alert warnings about a potential war in the Middle East. In this case students examine how much of the variance is due to volume versus price by reviewing the company's flex budget analysis.

Case ID: 080102

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