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Supply Chain Design Paper

Review: The Riordan Manufacturing Virtual Organization
Harlan Gary
OPS/571
18 August 2014
Patricia Ford

Create a sales forecast for electric fans using selected techniques

Riordan Manufacturing sales forecast for the demand of fans is based on 2006 and 2007 average sales for the last 24 months and projections increasing the amount in the third year. The purpose of this sales plan is to help the sales organization prioritizes activities and resources for 2006 in an effort to meet or exceed the stated sales objective (University of Phoenix 2013, Riordan Manufacturing, retrieved from University of Phoenix OPS/571 website).
Riordan’s strategic plan involves marketing, and product development, pricing strategy, and sales team productions. In forecasting, a customer demand is a primary factor that requires techniques for final approval on capacity for individual products and expected sales. The $50 million goal has two important factors: Increased sales to existing customers by increasing sales force promotions, price discounts, and customer group services, and expanded sales to new customers by implementing public relations activities trade shows, brand development and sales force promotions (University of Phoenix. 2013, Riordan Manufacturing. Retrieved from University of Phoenix, OPS/571).

Table 1. 2006 Sales Forecast for Electric Fans 2005 | | Average Units Sold Based on Actual Data | Deseasonalized Linear Regression Average Sales Figures | Seasonal Factor Based on Actual Data | Modified Seasonal Factor | Seasonalized Forecasted Average Sales Figures | Q1, 2005 | 69360 | 68669 | 1.015281925 | 1.010065707 | | Q2, 2005 | 67488 | 68434 | 0.987879852 | 0.986182226 | | Q3, 2005 | 68016 | 68198 | 0.995608642 | 0.99732545 | | Q4, 2005 | 68400 | 67963 | 1.00122958 | 1.006427008 | | Forecasted for...

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