Please answer question #2 as descriptive ans informatuve as possible and please include any reservations or qualifications that are vital to making the decision to expand! THANK YOU!

Gnomial Functions, Inc. CASE 14.2 Gnomial Functions, Inc. (GFI.la medium sized consulting a reliable estimate of its sales during the next 18 months firm in San Francisco that specializes in developing various The company management expects that sales should increase forecasts of product demand, sales, consumption, or other substantially because of competing energy costs tax credit information for its clients. To a lesser degree. It also has devel availability and fundamental shifts in the attitudes of the oped ongoing models for internal use by its clients. When regional population toward so-called exotic solar systems contacted by a potential client. GFI Usually establishes a basic The company also faces increasing competition within this work agreement with the firm's top management that sets out burgeoning market. This situation requires major strategic the general goals of the end product primary contact person decisions concerning the company's future. When GFI was nel in both firms, and an outline of the project's overall scope contacted, DynaSol almost had reached the manufacturing including any necessary time constraints for intermediate and capacity of its present facility, and it it wishes to continue grow final completion and a rough price estimate for the contract) ing with the market, it must expand either by relocating to a Following this step, a team of GR personnel is assembled to new facility entirely or by developing a second manufacturing determine the most appropriate forecasting technique and location. Each involves certain known costs, and each has its develop a more detailed work program to be used as the basis advantages and disadvantages. The major unknown factors for final contract negotiations. This team which can vary in size as far as management is concerned are growth of the overall according to the scope of the project and the client's needs, market for this type of product and how large a market share will perform the tasks that are established by the work program the company would be able to capture in conjunction with any personnel from the client firm who Table 14.12 contains the preliminary Information available would be included in the team to GFI on Dynasor's post sales Recently, GFI was contacted by a rapidly growing regional firm that manufactures sell, and Install active solar water heating equipment for commercial and residential applications DynaSol Industries has seen its sales increase by more than 200 percent during the past 18 months, and it wishes to obtain anagement has decided to use your expertise to deve afect for the next month and for these ment period owing the ones will be have some information on which to be a chionabout ning sepertion Develop with a forecast and for 2. Assume that you a member of Dar at man the bent of top management any reservations sting department and the contact megotiations with actions you feel are vital to sing and GR have failen though bevocably. The company to of the information TABLE 1012 the Month Sales Pweder Month DynaSol Industries Sales, Unit Regional Market Sales Units 223 September October November December 24 28 31 220 230 $395.00 404920 400.480 422.564 January February March April May 2018 544736 52.192 59.517 61.437 2019 57.990 07.197 78,621 30,637 16.684 94,748 110,000 116.480 127.265 137,740 14057 152.300 235 240 265 40 43 47 51 201 200 June 41 420.000 19.027 484.750 529.449 561419 600332 747.5 09.05 931.400 1.001256 1.057.320 August September ) October November December 421 486 500 Jawy February 520 2020 161,121 172,007 74 79 1057.320 1.145.254 Gnomial Functions, Inc. CASE 14.2 Gnomial Functions, Inc. (GFI), is a medium-sized consulting a reliable estimate of its sales during the next 18 months. firm in San Francisco that specializes in developing various The company management expects that sales should increase forecasts of product demand, sales, consumption, or other substantially because of competing energy costs, tax-credit information for its clients. To a lesser degree, it also has devel- availability, and fundamental shifts in the attitudes of the oped ongoing models for internal use by its clients. When regional population toward so-called exotic solar systems. contacted by a potential client, GFI usually establishes a basic The company also faces increasing competition within this work agreement with the firm's top management that sets out burgeoning market. This situation requires major strategic the general goals of the end product, primary contact person decisions concerning the company's future. When GFI was nel in both firms, and an outline of the project's overall scope contacted, DynaSol almost had reached the manufacturing (including any necessary time constraints for intermediate and capacity of its present facility, and if it wishes to continue grow- final completion and a rough price estimate for the contract). ing with the market, it must expand either by relocating to a Following this step, a team of GFI personnel is assembled to new facility entirely or by developing a second manufacturing determine the most appropriate forecasting technique and location. Each involves certain known costs, and each has its develop a more detailed work program to be used as the basis advantages and disadvantages. The major unknown factors for final contract negotiations. This team, which can vary in size as far as management is concerned are growth of the overall according to the scope of the project and the client's needs, market for this type of product and how large a market share will perform the tasks that are established by the work program the company would be able to capture. in conjunction with any personnel from the client firm who Table 14.12 contains the preliminary information available would be included in the team. to GFI on DynaSol's past sales. Recently, GFI was contacted by a rapidly growing regional firm that manufactures, sells, and installs active solar water- Assignments heating equipment for commercial and residential applications. 1. Given the information available one you knowledag of DynaSol Industries has seen its sales increase by more than 200 percent during the past 18 months, and it wishes to obtain datiemething a specific forecasting technique in the direren TOOLSIDAS SAARISEASE ARBARA subsRoutinel.contract negotiations are pend- Taller det van- Tages and Ventages of our dame as Theould apt the problem at hand and IT any additional information you violene-to-have 2. Assume that you are a member of DynaSol's small mar- keting department and that the contract negotiations with GFI have fallen through irrevocably. The company's top management has decided to use your expertise to develop a forecast for the next six months (and, perhaps, for the six- month period following that one as well). because it must have some information on which to base a decision about expanding its operations. Develop such a forecast, and for the benefit of top management, note any reservations or qualifications you feel are vital to its understanding and use of the information TABLE 14.12 DynaSol Monthly Sales for Period September 2018-February 2020 Month DynaSol Industries Sales, Units Regional Market Sales, Units Sales Sales 2018 September October November December 24 28 31 32 $ 44,736 52,192 59,517 61,437 223 228 230 231 $ 396,048 404,928 408,480 422,564 January February March April May June July August September October November December 30 35 39 40 43 47 51 54 59 62 67 69 2019 57.998 67,197 78,621 80,637 86,684 94.748 110,009 116.480 127.265 137.748 148,857 153,300 229 235 240 265 281 298 314 354 389 421 466 501 418,905 429,881 439,027 484,759 529,449 561,479 680,332 747,596 809,095 931,401 1,001,356 1,057,320 2020 January February 74 79 161,121 172,007 529 573 1,057,320 1,145,264