Prepare a demand management plan, including a forecasting, inventory management, and scheduling analysis, as well as recommendations, for the provided scenario.
Scenario
Wild Dog Coffee Company, a locally owned company with a single coffee shop location, serves a wide selection of espresso beverages, small breakfast and lunch menu items, and a limited evening menu. The company is planning to expand the business by adding an additional location. While different menu items may be tested at the new location, their core processes will remain the same. You have been working on a process improvement in preparation for the expansion and are now turning your attention to demand management.
Your Role
As an owner of Wild Dog Coffee Company, you and your business partners are planning the opening of a second location. You need to prepare an analysis and recommendations for demand management, including forecasting, inventory, and scheduling, for your current location, so you can refine the model before opening the second location.
Requirements
Include the following in your demand management plan:
• Assess the impact of advertising on product demand.
• If using Wild Dog Coffee Company, the following basic assumptions will help you prepare a demand forecast:
The other owners of Wild Dog Coffee Company handle the business’ marketing and sales functions, and they believe that advertising expenditures impact the sale of coffee beverages. They want you to confirm whether or not their advertising dollars are driving sales. Here is what was agreed upon by all the owners:
Questions
How many espresso beverages are made each hour?
How many ounces of espresso beans are used for each beverage?
How many hours per day is the coffee shop open?
How many days each month is the business open?