Anova Paper

vapours Inc. Memo To: Myra Reid From: Date: Re: Blues INC, future(a) Forecasts gross gross revenue and Advertising Forecasts Mrs. Reid, Recently I was asked to forecast factors at Blues Inc. and explain the reasons for my decision. First I was asked to look at three factors that relate to the bud accept and determine which one was most of import. verbo ten-spot of the three choices it was indomitable that gross sales are the most important variable. The companys current advertising budget is $156 one thousand gazillion and since there is a direct correlation to advertising and sales this has been increase to 167 million. Next we looked at two averaging models, the simple and the k-period. For the data required, we found that a two-year k-period model was the best mutable and pastce were able to determine that production levels should be change magnitude. level on the data from the models, I recommended that production levels be increased to 45 million units. You have stated that the sales forecasts allowed you to jump-start the production levels and with my help in accurately estimating the needed levels to carry on a 10 per centum inventory stock would then be required. Using the averaging model, it was discovered that over half-dozen years, rump one reflected a lower sales amount as with one- fourth part three.

However the model also reflected that over these same(p) six years quarter two would be at a slightly higher level and quarter four has the highest sales. To get word this trend I used an averaging model with a touch moving average. This gave an idea that overall, starting quarter sales were roughl y $10.27 million, second quarter sales were ! $12.74 million, trey quarter sales were $11.7 million, and 4th quarter sales were $17.5 million. Based on this trend, I was able to recommend to you that to stay within the ten percent inventory. Production should produce twelve million units for the first quarter, xiv million units for the second quarter, twelve million units for the third and fourth quarter. As a result of...If you want to get a full essay, order it on our website: OrderEssay.net

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