Uop Week 5 Memo

The suggestion to use the larger coefficient correlation was sound. As a result, sales were used as the variable as it yields a higher coefficient correlation (.96) than both retail coverage (.77) and the competitions advertising budget (.88). It is already known that the up-to-the-minute market share of Blues Inc. is six percent of a $40 billion denim industry. Therefore, to keep in pull in with the competition, the advertising budget is forecasted for $162 million.
The evaluation of the dumbfound used was the 2-period charge moving just model with a weight of .90 for the most(prenominal) recent observation and .10 for the next recent. With this information, the issue levels were set at 47 million units. With six percent of the market share, the 2-period charge moving average is 777 million units. The company can take care the coveted six percent share of the 777 million in sales.
Centered moving average model was used for the averaging model with a data browse of six years for the calculations. This range was to keep in literary argument with historical data thus far recent enough to help forecast current trends and variations.




Finally, the production levels were fixed at 12 million units for the first off sop up, 14 million units for the second quarter, 12 million units for the third quarter and 19 million units for the fourth quarter. These projections are in line with the sales figures forecast by the centered moving average model.
In conclusion, the forecasts for the upcoming year are solid with a possible increase in growth for the following year. The first and third quarters may seem somewhat nonprogressive. Because of the practice historical trend during these time frames, it is better to be conservative than bullish. With this projection, any needed adjustments can be made with dinky to no impact on the projected sales revenue Please note that the fourth quarter will more than make up for any slow down as the holiday season historically has shown major increases in sales.If you privation to get a full essay, order it on our website: Orderessay



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