Discuss Demand Management Plan

Prepare a 7-page demand management plan, including a forecasting, inventory management, and scheduling analysis, as well as recommendations, for a provided scenario or business of your choice.

Introduction

This portfolio work project, a demand management plan, will help you demonstrate competency in forecasting, inventory management, and scheduling.

Scenario

For this assessment, choose either Option 1 or Option 2. You do not need to do both. You will apply one of these scenarios in the Requirements below. Both options will be graded using the same scoring guide.

Option 1

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.

Option 2

If you chose Option 2 for Assessment 1, use the same business for this assessment, or select a different business. Note that it is recommended that you use the same business for each assessment in this course, using the following criteria for your selection:

• The company fits the assessment requirements and you have access to the information needed to complete the assessment.
• The business information is disclosed in the assessment for faculty’s reference.
• You can distribute the business data without disclosing confidential information.

Contact faculty with questions.

Your Role

Option 1

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.

Option 2

Your boss, a director, has tasked you with a demand management project. She is relying on you to prepare an analysis and recommendations for demand management that can be presented to the executive team of the company. You completed a special project for her a few months ago that went very well, and you are pleased to have received this new assignment.

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:

• Interpret the forecasting model for the selected product.
  • Use a simple linear regression model to show your forecast.
  • If using Wild Dog Coffee Company, forecast the pounds of espresso beans needed for month 7 if the advertising budget for month 7 is $1,350. Interpret the model and respond to the following questions for Wild Dog Coffee Company: