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Business Decision Making

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Business Decision Making

SCENARIO – REE SAIGON

REE Saigon Company which manufacture and distribution of air conditioners designed for home and industrial application, switchboards, control panels, mechanical products through Vietnam. REE Saigon exports its products to foreign markets such as Europe, America, Japan, Southeast Asia and other parts of the world.

The market for air-conditioning products in Vietnam is still growing; and … to both man¬ufactures and distributors whereas production material and labour costs, management and financial expenses are on the rise while competition is strong among the manufac¬turers creating downward pressure on prices of air-conditioners.

REE Saigon also expanding distribution channels for the consumer good segment, developing high-technology products with values added and high profit margin is the key objectives for the manufacture, assembly and sales of REE products.

As demand of air-conditioner grows, on-time delivery to its distributors and customers becomes critical issue for the company. In order to cope up with business growth, REE needs to implement the following tasks for making further management decisions.

1. Forecasting Techniques

Tram is in-charge of International Export department and you are working as assistant manager under her supervision. Tram needs to inform the production department about the number of air-conditioners to be produced in upcoming budget year 2010. She has assigned you to provide her sales forecast for 2010. Quarterly sales data, in thousands units, from the past four years are provided as follow:

Year Q1 Q2 Q3 Q4

2006 139 144 68 170

2007 151 154 99 180

2008 159 167 106 192

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