Management meeting attended by senior managers of your company, you will hear from the CEO about flat sales in the last several months. That, unless the company reaches the target goal of $4 million sales in the next couple of months, the bonuses will be reduced, possibly reduce the sales budget and may even resort to sales force reduction. To support her decision, the CEO presents the sales data for the last several months. Now that you understand variation and control charts, educate your CEO about the sales process and provide a foundation for decision making.
a) What are your suggestions about the demand for $4M in sales? Please be sure to have a substantive discussion.
b) Using the control chart discuss forecasting with the CEO. What would be your forecast for the near future? Base your discussion on control chart interpretation and discussions in the course materials.

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Month Sales ($) Sep 2,786,210 Oct 1,886,760 Nov 1,506,500 Dec 1,618,430 Jan 1,531,590 Feb 1,118,880 Mar 1,279,610 Apr 2,122,580 May 2,559,010 Jun 2,615,360 Jul 1,459,910 Aug 1,346,550 Sep 2,019,880 Oct 2,678,670 Nov 2,182,690 Dec 2,121,660 Jan 1,532,330 Feb 1,865,280 Mar 1,884,350 Apr 1,674,640 May 1,928,160 Jun 2,359,180 Month Sales ($) Sep 2,786,210 Oct 1,886,760 Nov 1,506,500 Dec 1,618,430 Jan 1,531,590 Feb 1,118,880 Mar 1,279,610 Apr 2,122,580 May 2,559,010 Jun 2,615,360 Jul 1,459,910 Aug 1,346,550 Sep 2,019,880 Oct 2,678,670 Nov 2,182,690 Dec 2,121,660 Jan 1,532,330 Feb 1,865,280 Mar 1,884,350 Apr 1,674,640 May 1,928,160 Jun 2,359,180

Answer rating: 100% (QA)

Ansa Looking at the 22 months data it is very clear that Sales have been averaging around 2 ... View the full answer