This case is reserved for use by Columbia Business School Faculty only.
How can a milk distribution company use cost forecasting to help manage significant volume and price discrepancies?
How can a milk distribution company use cost forecasting to help manage significant volume and price discrepancies?
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.