Question: 4 . SSI would like to determine its potential sales for the first year on the basis of the information in question 3 ( see
SSI would like to determine its potential sales for the first year on the basis of the information in question see answer to question below to help solve this question. However, there is some concern that the estimate of average retail sales is too high. SSI assumes only percent of the participating retailers will actually achieve the average sales and reorders this group is designated as high performers Twenty percent of the retailers are expected to have medium performance success
and will only sellreorder percent of the average suggested order. Lowperforming retailers represent the remaining percent and will achieve half the salesreorder expected on average. Calculate the orders separate initial and reorder quantities for the month trial period if percent of retailers exclusively orderreorder large packs
and the remaining retailers exclusively orderreorder small packs. Calculate the second months accounting for the dropout. Round if necessary. Assume the "performer" ratios remain the same after the trial period ie percent are average performers, percent sell percent of the average, and percent sell percent of the average
Answer to Question which is required to solve above Question :
Calculation of annual sales into number of packs
Large packs contain units while Small packs contain units
Annual Demand is units. Required number of packers calculated below:
Large Pack packs rounded to nearest whole packet packs
Small Pack packs rounded to nearest whole packet packs
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