determine demand for this Quarter

Demand Projection calculation The key to estimating total demand is to estimate the number of units each salesperson is likely to sell. Multiply this number by the number of sales people employed for the quarter to obtain an estimate of the total demand. FORMULA Demand Projection = # of units per salesperson x # of sales people employed for the quarter. Brand Demand Projections Once you have estimated total demand, you will want to allocate this demand across the brands that you plan to sell this quarter. These individual brand forecasts will not be used to schedule production. Rather, they will be fed into a software program that imitates or simulates how your production works. With this production simulation, you can evaluate your production decisions before you actually finalize everything. YOUR TASK In the Workspace, insert the number of units you think your sales people can sell during this quarter. The number of sales people that you have hired has already been inserted. The key to forecasting total demand is to estimate how much the demand per salesperson will improve as a result of your adjustments in brand design, pricing, advertising, and sales force In the Workspace, insert the number of units you think your sales people can sell during this quarter. The number of sales people that you have hired has already been inserted. The key to forecasting total demand is to estimate how much the demand per salesperson will improve as a result of your adjustments in brand design, pricing, advertising, and sales force allocation. Next, allocate total demand across the brands that you plan to sell. Finally, note the "Production capacity required to satisfy projected demand." This is the estimate of the minimum operating capacity required to satisfy the total demand. DECISION TIP To help you forecast demand per salesperson for the current quarter, the Workspace screen shows your demand per salesperson for the previous quarter. All you need to do is estimate whether this number will increase or decrease for the current quarter based upon your revisions of your marketing strategy and tactics and what you think the competition will do. If you do very little to increase your demand creation activities, your demand will probably decline. This is because your competition almost certainly upgraded their efforts. If you increased your efforts at the same rate as they did, then your demand per salesperson will likely remain stable. Remember that if you underestimate demand and set your operating capacity too low to meet your actual demand, you will create stock-outs. Stock-outs frustrate potential customers and cause ill will. If you had stock-outs last quarter, it will have a negative effect On your demandithis.cuarter to estimate the ill.willinepalvon vou demandithe quarter Demand Projection Last Quarter (Actual) This Quarter (Projected) Number of Demand per Total Number of Demand per Total Sales People Sales Person Demand Sales People Sales Person Demand 5 4.40 22 5 50 250 Sales Offices 4 2.25 Web Sales Center 9 4 50 200 9 Total 31 9 450 Brand Last Quarter (Actual) Demand Percent 15 48.4% This Quarter (Projected) Capacity Demand Percent Inventory Units Required 0 25.0% 15 0 R Future Tech HP 16 0 15 51.6% 25.0% FT Basic 0 0 n/a 25.0% 0 n/a PIFT1000 0 0 0 FT2000 n/a n/a 25.0% 0 0 30 Total 31 100.0% 100.0% Units / Quarter Units / Day 0 Operating capacity required to satisfy projected demand