Answer each questionin a paragraph in 12hr
June 23, 2021
module 02 course project assumptions and mistaken behavior
June 23, 2021
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Alternative Fuel Company Case

Alternative Fuel Company Case

Our reading this week emphasizes the role of demand management in creating a
coordinated flow of demand across the supply chain. Experience shows that
selecting the best method of estimating demand will vary with the maturity of
the business and the data available. In a four- to five-page paper (excluding
title and references pages) address the following:

  1. A start-up alternative fuel automobile company has a
    first year market forecast of 1000 units. Identify the forecasting model
    that is in use here and explain why it is the obvious choice.
  2. During its first three full years of operation the
    automobile company had actual sales of:

    • Year One: 800 units
    • Year Two: 1200 units
    • Year Three: 2000 units
    • Using a simple three year moving average, calculate
      the predicted demand for Year Four.  Explain your reasoning. 
  3. The sales department expects the growth in Year Four to
    more closely resemble the average growth experienced in the last two
    years. Predict the number of units expected in Year Four. Discuss whether
    you would recommend this quantity as the manufacturing plan or the
    quantity found using the simple three year moving average in step two and
  4. In Year Three, one fourth of the production was sold in
    China. The marketing department has just learned of a new tax that will be
    imposed on all luxury imports into China beginning in Year Four. It is
    expected that this will decrease sales to China by 50%. Apply this market
    intelligence to the simple three year moving average method discussed in
    step two and recalculate the predicted demand for Year Four. Explain how
    you arrived at your answer.

Your paper must be formatted according to APA style.
You must cite at least two scholarly sources in addition to the textbook.


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