Demand Paper

Demand Paper
















Paula Dandridge



















MGT 554

Operations Management

Ken Romano, Instructor

July 2, 2003


Demand Paper for Contract Services


Introduction
The contract services department at Caterpillar Financial provides temporary financial relief to customers who have financed Caterpillar equipment through Caterpillar Financial Services Corporation. This paper explains the demand for such services and how the needed personnel are forecasted.
Patterns of Demand
In the text Krajewski states (2002 p. 175), “at the root of most business decisions is the challenge of forecasting customer demand.” This is the one of the most important pieces of the operating plan. In the contract services department, we are forecasting the demand for modifications to existing contracts. The modifications consist of skip payments, interest only payments, extensions to term, due date changes, transfers and assum...