case study

Project Description:

paul has just been hired as a management analyst at digital cell phone, inc. digital cell manufactures a broad line of phones for the consumer market. paul’s boss, the chief operations officer says he has a special task for paul: “we’ve always just made an educated guess about how many phones we need to make each month. usually we just look at how many we sold last month and plan to produce about the same number. this sometimes works fine. but most months we either have too many phones in inventory or are out of stock. neither situation is good. here are our actual orders entered for the past 36 months. there are 144 phones per case. i was hoping that since you graduated recently from webster university, you might have studied some techniques that would help us plan better. i’d like you to analyze these data and give me an idea of what our business will look like over the next 6 to 12 month. do you think you can handle this?”
“of course, “ paul replies, sounding more confident than he really is. “how much time do i have?”
“i need your report on monday evening. please explain things carefully so that i can understand your recommendation without having to ask you any more questions. since you are new to the company, you should know that i like to see all the details and complete justification for recommendations from my staff.”
with that, paul was dismissed. arriving back to him office, he began his analysis.

month orders received by month
cases 2011 cases 2012 cases 2013
january 480 575 608
february 436 527 597
march 482 540 612
april 448 502 603
may 458 508 628
june 489 573 605
july 498 508 627
august 430 498 578
september 444 485 585
october 496 526 581
november 487 552 632
december 525 587 656


prepare paul’s report to john. describe the steps you would undertake to perform this analysis. develop a forecasting model justifying its selection over other techniques, and project the expected number of cases to be ordered in 2014. provide a summary of the cell phone industry outlook using internet resources as part of paul’s response.
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Price Type: Negotiable

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