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Sales Forecast Of The Automotive Parts for Ted Rallley's Company Essay Example

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Sales Forecast Of The Automotive Parts for Ted Rallley's Company

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Sales Forecast Of The Automotive Parts for Ted Rallley's Company. A lot of challenges is faced by the distributors of the USA since it very difficult to penetrate the supply chain marker as the chains were established long ago with home marketers. With the economy continuously deteriorating everyone seems to be getting hurt financially, even the automotive industry, which has deepening the economic recession. Automotive part suppliers continued to experience heavy debt and overcapacity caused by production cuts by automakers, specifically including the big 3 (Ford Motor Company, General Motors and Chrysler). The suppliers are also being pressed by higher energy and input materials costs. It has been determined by Industry analyst that automotive companies that accounted for more than $72 billion in sales have filed for Chapter 11 protections in 2008.

The number of Bankruptcies will continue to rise as the years go by. Domestically, losing the big 3 to U.S affiliates of foreign-based manufacturers and imports in 2008 have caused a dramatic 50% drop in the market share. Most US suppliers are dependent on these three companies aforementioned.S suppliers are currently facing the challenge of penetrating automakers supply chains, mostly because these relationships have been long-established with home-market supplies. Ted Ralley is the director of a marketing research for a manufacturer of spare automobiles parts and it’s working on conducting a forecast for the upcoming year. Ted is aware of the forecasting errors and how costly they can be which is why these numbers must be as accurate as possible. In order to perform this forecast, Ted has collected the data on quarterly sales for the previous four years and ran several forecasts using time series forecasting methods. Ted noticed that economic activity and oil prices have impacted significantly the auto part sales and decided that the forecast will be more accurate using econometric variables. There is decline in the auto sales of ted relly company. The marketing director decided to make a future forecast of the sales so as to be able to see the future of the company. Tedd Ralley uses two regression model the model with econometric factors and model without econometric factors. Sales Forecast Of The Automotive Parts for Ted Rallley's Company.

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Introduction to Management Accounting: Chapters 1-17. Prentice Hall.

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