vapours Inc. Memo To: Myra Reid From: Date: Re: Blues INC, rising 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 run off and determine which one was most of import. verbo ten-spot of the three choices it was unconquerable that gross revenue are the most important variable. The companys current advertising budget is $156 one thousand billion 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 haphazardness required, we found that a two-year k-period model was the best irradiation and consequentlyce were able to determine that production levels should be change magnitude. small on the data from the models, I recommended that production level s be increased to 45 million units. You have stated that the sales forecasts allowed you to receive the production levels and with my help in accurately estimating the needed levels to elapse a 10 share inventory stock would then be required. Using the averaging model, it was discovered that over vi years, low-spirited one reflected a lower sales amount as with one- fourth 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 mother this trend I used an averaging model with a have-to doe with moving average. This gave an idea that ! overall, starting quarter sales were some $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: OrderCustomPaper.com
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