Case Essay Example | Topics and Well Written Essays - 500 words - 6

Case - Essay Example The most commonly used tool is the ANOVA (Analysis of Variance). ANOVA helps the manufacturers to predict the customer demands and requirements in particular markets. The results obtained help the Sales and Marketing Department to predict the volume of production and supply of goods. For instance, it helps them to know what type of a car model preferred over the rest in a particular region. The organization also uses correlation as a method of forecasting the sales. The tool analyzes the variables that determine the sales volumes. It then establishes the relationship between the variables. For instance, the exchange rate of the dollar determines the fluctuations of the market prices. The correlation becomes stable if it has a position coefficient of 1, and weak if the coefficient is negative. If it is zero, then at that particular moment there is no relationship between the two variables. In the same case, regression is used to determine the sales volumes. Sales=Number of vehicles sold*selling price (Opsmgt.edublogs.org,). The other company is the Netflix. It deals with the online distribution of movies, videos, and music. One of the tools used to forecast the sales of the enterprise is the descriptive statistics. The tool analyzes the trend in the sales. For instance, it determines the number of videos sold via the online market, the frequency of visit by the registered customers, as well as the rate at which new clients enroll. The data obtained is used to predict the financial stability of the organization, as well as its competitive position at the market. Netflix also uses the exponential smoothing tool. The device employs the principle of comparison the sales of the previous years. The organization uses the margin of error between the last two previous years to brace on how to adjust the production and sales strategies. On the same not, the moving average tool is used to analyze the