Once the predicted demand is frozen, L.L. Bean uses its historical demand and forecast data to analyze the forecasting errors. The forecast errors are calculated for each individual item and a frequency distribution of these is made, which is further used as a probability distribution for future errors. Thus, if 50% of the errors were within 0.7 and 1.6, the forecast for this year would be adjusted accordingly. Next, each item commitment quantity was calculated using its contribution margin and its total contribution in dollar to the revenue of the company.
2. Explain the numbers in Table 2. Use the values in cells J6 through R6, J10 through R10, J14 through R14 and J18 through R18 as examples. What happens to the allocations for the middle risk level fund as the target date approaches? The values in Table 2 are the weights of the risk-free asset and the risky assets in the optimal combined portfolio for a given holding period and risk-aversion level.
The above calculations have been performed using the CLTV method described in the case. Your team assignment is to analyze these data, and the information given in the case, to balance CLTV and current profitability. You should make strategic and tactical recommendations for how to manage these three customer segments. Specific questions to consider: (max 2 page write up to be printed and submitted, one per group) * What should RBC’s strategy be for managing each market segment? * What should RBC do about customers who are unprofitable?
(0.5 points) An income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. 4. What is a projection? (0.5 points) A projection is a guess or estimate about what something will be like in the future. 5.
Mr. Smith Homework 6.1: Documenting A Project Answer the following questions: 1. What is the purpose of a charter? Answer: To document…..In and out of scope items, Objectives and constraints of a project, Identities of the main stakeholders, Serves as the primary sales document for a project, Risk management plan, Budgets and spending authorities. (wikipedia, 2011) 2. What are the five components of a charter?
1.2. Market condition evaluation: Understand the prevailing conditions in the market, (growing, shrinking or static) and make predictions for 1-5 years. 1.3. Customer analysis: Create typical customer profiles, who are they? Where are they?
Further, L.L. Bean computes the frequency distribution of these errors across items. Therefore, the use of past data allows L.L. Bean to obtain a probability distribution for the future unrealized forecast errors. For example, if 50% of the errors for a specific item category, i.e.
More specifically, Caladonia’s financial personnel should determine the payback period of each project, the internal rate of return (IRR), the new present value (NPV), if any ranking conflict exists, and then decide which project should be accepted and why. Additionally, Caladonia’s financial personnel should also gather information about leasing versus buying the assets. Team C will address all the above questions that Caladonia’s financial personnel should ask prior making any decisions. What is each project’s payback period? Project A: 100,000/32,000 = 3.125 years Project B: 100,000/200,000 = .5 years What is each project’s net present value?
The Quantitative Reasoning for Business course will help utilize forecasting methods that are used in operations. The course will also teach concepts of finance such as the break-even analysis. All courses are necessary in successfully applying the concepts learned to real business situations. The desired outcome of the course is to be able to think analytically and make sound business decisions. References Quantitative Reasoning for Business Overview, University of Phoenix
Defining variables of the dynamic diagram Each variable incorporated in the integrated causal diagram should be represented in the dynamic diagram. Obtaining equations can be accomplished by simulations, experimenting with different variables and functions. These last are proposed according to the shape of the observed curve and theoretical economic assumptions, to verify the statistical relationship between the sets of variables. Validation of the equations is performed using the statistical R2 adjusted, variance analysis and prediction errors. The selection criteria used is as follows: 1st Statistical Fisher "F" analysis of variance> F table (α; √1, √2); using α = 0.10.