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Alternative Fuel Company Case

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Alternative Fuel Company Case

Cristin Johnson

BUS632: Advanced Logistics
Ashford University Instructor: Matthew Keogh
July 12, 2016

Alternative Fuel Company Case For this assignment I will refer to the Barwood Cab Fleet Study of alternative fuel. Barwood based in Kensington, Maryland incorporated the use of compressed natural gas (CNG) vehicles with a limited number in 1996. As one of the reasons to use the CNG vehicles was incentives which the local gas utility offered. This company has been in operation for over 30 years, being a family owned business with a fleet of some 400 vehicles which serves more than 5,000 customers on a daily basis. Like most cab companies the cabs are assigned to individual drivers as independent contractors, paying a daily rent in order to use Barwoods vehicles. “Of course, cost is still an issue with many alternative sources of fuel, according to Chuck Combs, who is the program lead for alternative energy at China Lake and provides the Navy and Marine Corps with technical expertise in solar and fuel cell efforts”. (Hillburn, 2007) Here will be discussed how the alternative fuel automobile company has a first year market forecast of 1000 units by identifying the forecasting model with an explanation of why it is the obvious choice, while during the first three years of operation the automobile company had actual sales of: year one 800 units, year two 1200 units, year three 2000 units and by using a simple three year moving average calculation of the predicted demand for year four with an explanation of reasoning, in addition the sales department expects the growth in year four to closely resemble the average growth experienced in the last two years, with a prediction of the number of units expected in year four along with a discussion on whether or not to recommend this quantity as

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