Decisions Report

Questions: 1. How did you set the number of units produced of each brand? + an example
In period 0, we had inventories for our brands, 29470 units for SUSI and 47 units for SULI. To set the number of unit produced for period 1, we looked at how much we produced and sold for the last period and also, the number of units in inventory we had in order to reduce the cost of holding inventories. For the next period, we looked at how customers react to our product, the study of brand purchase intention, inventories… to set our production.
For example, let’s look at period 3. To set the production for period 3 of SUSI and SULI, we first looked at how many units we sold in period 2 regards to how many units we produced in period 2. For SUSI, we produced 40000 units and finally, 35000 units are really produced. Then, we sold 78396 units (because of inventories we got last period) and we had 3 units at the end of period 2. Also, we looked at “brand purchase intention” to see who are our customers (for SUSI period 2 it was others with 27.7%). Knowing that, we set our production at 80000 units. We did exactly the same way to set SULI production. 2. How did you set the advertising budget for each brand? + an example
In period 0, the advertising budget was 2880K$ for SULI and 960K$ for SUSI, and also the advertising research expenditures was respectively 120K$ and 40K$. Our first objective was to increase every year the advertising budget of our brands by at least 3% in order to remind to customers that our products exist and promoting it. But, we saw that we spend a lot of money for advertising, more than other companies and we doubt about the results so we decided to keep a constant advertising budget between 2000K$ and 3000K$ for SULI and between 1000K$ and 2000K$ for SUSI. SUTI advertising budget will rank between 800K$ and 1200K$. Sometimes, we spend more if we see that customer purchased change, increasing advertising budget can be a good