...nment Assignment 1 “Making Decisions Based on Demand and Forecasting” Strayer University ECO 5550 – Managerial Economics and Globalization May 12, 2013 Making Decisions Based on Demand and Forecasting There are several demographic and independent variables which are relevant in completing a demand analysis for pizza in Loudoun County, Virginia. The first variable that I used in completing my demand analysis is the average cost per pizza in the Loudoun County, Virginia area. The average cost of pizza is imperative in completing a demand analysis, because consumers in Loudoun County, Virginia have several choices in pizza companies vying for their attention. The second variable that I used was the sales revenue for Domino’s Pizza domestic stores for the quarters ranging from the first quarter of 2010 to the first quarter of 2013. Once I obtained the sales figures for the quarters ranging from the first quarter of 2010 to the first quarter of 2013, I then divided the sales revenue in order to obtain the average sales revenue for each domestic store. In order to complete a demand analysis, and forecasting income for future periods one must be able to know the relationship between the average sales per store, and the consumers who are demanding the product. The third variable that I used in completing my demand analysis is median income for Loudoun County, Virginia. Median income is significant for two reasons; first one can tell if the median income can afford to...
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...LAB’S MODULE: FORECASTING In this exercise, you will learn how to create forecasts for a product group through SAP. SAP provides a complete set of forecasting tools that can be used in a number of sales and operations areas. The most flexible set of forecasting tools are provided in the Sales and Operations Planning (SOP) transaction. The flow of the forecasting flowchart can be seen below: [pic] 1: Create Product Group |Purpose of Exercise | |To assist with Sales Order Planning you firstly need to create a Product Group. Product groups (product families) support high-level | |planning. A product group combines other product groups and materials. | |Menu Path |Logistics ( Production ( SOP ( Product Group ( Create | |Trans Code | | The Create Product Group: Initial Screen appears. 1. Type KidBikeGrp### in the Product group field. 2. Type ### Sport & Fun Kid Bike Prod Grp in the Description field. 3. Type DL00 (Plant Dallas) in the Plant field. 4. Type ST (items) in the Base Unit field. 5. Check that Materials radio button has been selected. ...
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...FORECASTING - a method for translating past experience into estimates of the future. Forecasting is the process of making statements about events whose actual outcomes (typically) have not yet been observed. A commonplace example might be estimation of the expected value for some variable of interest at some specified future date. Prediction is a similar, but more general term. Both might refer to formal statistical methods employing time series, cross-sectional or longitudinal data, or alternatively to less formal judgemental methods. Usage can differ between areas of application: for example in hydrology, the terms "forecast" and "forecasting" are sometimes reserved for estimates of values at certain specific future times, while the term "prediction" is used for more general estimates, such as the number of times floods will occur over a long period. Risk and uncertainty are central to forecasting and prediction; it is generally considered good practice to indicate the degree of uncertainty attaching to forecasts. The process of climate change and increasing energy prices has led to the usage of Egain Forecasting of buildings. The method uses Forecasting to reduce the energy needed to heat the building, thus reducing the emission of greenhouse gases. Forecasting is used in the practice of Customer Demand Planning in every day business forecasting for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces...
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...Business Operations In My Organization: Strategies for Achieving Competitive Advantage Lionel Bryan Small Walden University Business Operations in Your Organization: Strategies for Achieving Competitive Advantage Introduction This Praxis paper focuses on four areas that can improve Royal Dutch Shell Group’s (Shell) ability to be more competitive with other integrated oil majors in the global supply chain. Shell’s goal is to be “the world’s most competitive and innovative energy company” (Shell 2013). First, the macro-processes involved in the supply chain of Shell are introduced. Forecasting techniques were researched to see how these can be applied to demand management in Shell. Third, business process integration was investigated to improve the supply chain in Shell. Finally, operations and production strategy was synthesized to respond to the changing demands in the modern global environment. Discussion The Macro-processes Involved in the Supply Chain of Shell Company Chosen and the Reason. The company I chose for this assignment is Shell. The key reason is I work for Shell. I have access to global supply chain managers who will help with this assignment. I contribute to the planning operations in the global supply chain. My contribution is the production of petroleum liquids for refinery processing. Gas produced is sold directly to customers as fuel. I believe a lot was learned during the review and analysis of Shell’s global supply chain. Shell’s...
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...Running Head: DEMAND AND FORECASTING Making Decisions Based on Demand and Forecasting [bami] strayer University] Making Decisions Based on Demand and Forecasting The demographics used for the demand analysis are the average yearly income of the house hold in Georgia, the total yearly population, and average kids per house. The rationale behind choosing these demographics is that the demand is highly associated with the average income, and can have a great impact on the demand of the economy, for higher the income, the higher the spending ability of an average house hold. Therefore, it can also be said that the average income is directly proportional to the spending ability of an average house hold, whereas as far as total yearly population is concerned, demand is also associated with the total population, as for demand arises with rise in population. Average kids per house hold also have a strong link with demand. Considering the fact that pizza is highly popular among kids, and is the cause of its major demand. The other independent variables used for conducting a demand analysis are price of the pizza, and price of the soda. The rationale behind choosing these demographics is that the demand is also highly associated with price, as per the demand and supply law, the lower the price the higher the demand, and the higher the price, the lower the demand. Pizza and soda are two main products of a pizza restaurant...
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...biggest shoe company, has a reputation for fancy footwork, especially in the arena of marketing. With both Forrest Gump and Michael Jordan sporting NIKE's athletic shoes, NIKE's appeal is wide ranging. The shoe giant still holds nearly 37% of the US market, a giant lead over #2 Reebok, which has 20.5%, and #3 Fila, with only 5.1%. NIKE - a powerhouse in the world of sports, the designer and international marketer of athletic shoes, casual footwear, apparel, and accessories - is looking for new growth opportunities. Founders: Bill Bowerman and Phil Knight. First year-sales totaled $ 8,000 (1962). Employees: NIKE employs approximately 26,000 people worldwide with 650,000 workers are employed in Nike contact factories around the world. Revenue FY05: $ 13.7 billion ( 12% increase from FY04) Manufacturing: Nike brand had 137 factories in Americas (including US), 104 in EMEA, 252 in North Asia and 238 in South Asia. Subsidiaries: Cole Haan Holding, Inc, Bauer Nike Hockey, Hurley International LLC, Nike IHM, Inc, Converse Inc, Exeter Brands Group LLC. Forecasting & Planning In the modern supply chain, forecasting is necessary for Nike to manufacture items for inventory and that are not made to order. Nike will use material forecasting to ensure that they...
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...Barilla has been experiencing fluctuations in demand patterns of its distributors, resulting to operational inefficiency’s and increased cost. Barilla has proposed to address the problem by implementing a continuous replenishment program; Just in time Delivery (JITD), under which the responsibility for determining shipment quantities to distributors would shift from distributors to Barilla’s Logistical team. This new system, contrary to the current system Barilla has, will eliminate Bullwhip effect and stock outs by having centralized information, there will be data transparency between Barilla and distributors. Distributors will provide actual sales data which will be the basis of forecasting and production thus increasing in efficiency in operation and alleviating stock out among distributors. The predicament exists in Barilla’s customers, sales representative and marketing organizations resistance to change and internal resistance toward implementing JITD. In this case study...
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...Individual Project 1 1. Forecasting (a) Economic Growth: According to Bureau of Economic Analysis GDP increased by 2% in the first quarter of 2012 and by 1.3% in the second quarter. It is likely that this positive trend will be confirmed even in the 3rd quarter of this year. A possible estimate is the mean of the variations of GDP which occurred in the first two quarters of 2012. According to this reasoning GDP would increase by about 1.65% in the 3rd quarter. In order to support this estimate we can look at several significant indexes. For instance we can consider the Consumer confidence (this index is aimed at predicting consumption patterns). The figure related to September was 70.3 compared to 61.3 of the previous month. Therefore an increase in private consumption could lead to an increase of GDP. The increase in private consumption is not unreasonable. The average annual expenditure per consumer rose by 3.3% in 2011, slightly outpacing the 3.2% increase in CPI which occurred from 2010 and 2011. This is the first real rise in private consumption after 2007. So we can reasonably expect an increase in consumption expenditure even in 2012. Another meaningful index we can consider in our analysis is New home sales. The data for August was 373K compared to 374K of the previous month. So there is a slight downturn in purchased houses that could represent a reduced willingness to make investments. But at the same time I think that this decrease is too small...
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...Automobile industry. We have a rich history of success and working through difficult challenges and I have no doubt that we will do so again with the right decision on this model. The Automobile industry is a complex one with many suppliers, parts, dealerships, competitors and all this is now happening in a global market. This complexity makes efficiencies difficult to implement and drives up the costs our supply chain. Many efficiencies would require the cooperation of both internal and external parties and would require significant investment. Ford’s main problem with their current system is the inefficient usage of their huge data base, the complex network of suppliers, the presence of many independent distributors who are making forecasting difficult and the lack of direct communication with customers. Through my review I have come to the conclusion that the full implementation of the Dell Model would not work; the way customers buy cars and computers in this day and age is to different. With the high value of a vehicle customers want to test out the product and therefore we will need to maintain the dealerships but I do believe aspects of this model need to be implemented to lead to major cost savings with Fords Supply Chain. In this report I have laid out the items we should implement, a time line and the metrics for review. Ford Motor Company: Supply...
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...------------------------------------------------- Walmart Information Systems Overview Walmart Technology In its relentless pursuit of low consumer prices, Wal-Mart embraced technology to become an innovator in the way stores track inventory and restock their shelves, cutting costs and passing the savings along to customers. In the process the company became synonymous with the concept of successful supply chain management. Wal-Mart isn’t just the largest retailer in the world over the past several years it has popped in and out of the top spot on the fortune 500 list—meaning that the firm has had revenues greater than any firm in the United States. Wal-Mart is so big that in three months it sells more than a whole year’s worth of sales at number two U.S. retailer, Home Depot. At that size, it’s clear that Wal-Mart’s key source of competitive advantage is scale. But firms don’t turn into giants overnight. Wal-Mart grew in large part by leveraging information systems to an extent never before seen in the retail industry. Technology tightly coordinates the Wal-Mart value chain from tip to tail, while these systems also deliver a mineable data asset that’s...
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...Kaplan University Graduate School of Business and Management GB530 Marketing Management: Brand Extension Marketing Plan Brand Extension Marketing Plan A MARKETING PLAN IS THE FOUNDATION FOR ALL MARKETING EFFORTS The new product I plan on implementing is a non-touch toilet flush. The flush will be controlled by the sound of a clap, with a double clap indicating for a full flush, while a single clap would indicate a half flush. It is a simple idea that will be called a simple name “CLAP2FLUSH”. This will be an additional option along with the traditional style of flushing currently in markets with goal of eliminating the traditional style. The intent is to save consumers the amount of water used each time they flush the toilet. A typical household of four uses 260 gallons of water each day. Much of this water is used in the bathroom. Toilets use 40% of the total, showers/baths and faucets use 35%. By contrast, 15% is used in the kitchen, and 10% for washing clothes. If we give people the option of using less water to flush instead of 5 gallon of water every time you touch the flush, I believe this product would be a great product that will generate revenue. The name for the for- Profit Organization will be called MAYAT’D. I will use many of the facts already provided on toilet use and the amount of water used in the household like some of the one’s I just mentioned , along with getting with potential amount of saving consumers can save with the...
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...packaged goods. There are no magical algorithms, forecasting tools, or proprietary process solutions that offer much more than a "like as" or analog-based planning solution. The companies that do the best job in forecasting new ¡Hnáucts work the details in a methodical way, challenge underlying assumptions, and examine all available data to givei: PATRICK BOWER Mr. Bower is Senior Director of Corporate Planning & Customer Service at Combe Incorporated, producer of high-quality personal care products. He is a frequent writer and speaker on supply chain subjects, and is a self-professed "S&OP geek." Prior to Combe, he was with a consulting firm where he worked for clients such as Diageo, Bayer, Glaxo Smith Kline, Pfizer, Foster Farms, Farley's and Sather, Cabot Industries, and American Girl. His experience also includes employment at Cadbury, Kraft Foods, Unisys, and Snapple. He has been twice recognized as a "Pro to Know" by Supply atid Detnand Chain Executive magazine. He is also the recipient of the IBF 2012 award for "Excellence in Business Forecasting & Planning." His expertise includes S&OP, demand planning, inventory, network optimization, and production scheduling. Copyright ©2013 Journal of Business Forecasting 1 All Rights Reserved I Winter 2012-2013 ne of the toughest demand planning tasks is forei goods world. Why? First, we don't really have good math tg^nnelp us. It would be great if there were a forecasting algorithm that reads consurriefs'' minds, but there...
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...Logistics and Supply Chain Management Practices in India Samir K. Srivastava, Management Development Institute, Gurgaon, India ABSTRACT India is the fourth largest country in terms of Purchasing Power Parity (PPP) and constitutes one of the fastest growing markets in the world. Globalization of businesses, infrastructural bottlenecks, increasing uncertainty of supply chain networks, shortening of product life cycles and proliferation of product variety have forced Indian firms to look beyond their four walls. They face issues related to choosing and working with the right supply chain partners (suppliers, customers and logistics service providers), fostering trust between them and designing the right system of gauging performance. In this paper, we present a snapshot picture of logistics and Supply Chain Management (SCM) practices in India. It is borne out of the felt need by managers, expert professionals and academicians to address logistics and supply chain practices at the national level. Our exploratory study is based on both field visits and secondary data. We capture facts, figures as well as qualitative responses about the logistics infrastructure and supply chain practices. We focus on supply chain collaboration and partnerships, supply chain structure, facilities network design, transportation and logistics and the role of Information and Communications Technologies (ICT). Field visits to at least one major facility of 25 firms were carried out during...
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...Andrews Corporation | Performance Assessment & Competitive Strategy Evaluation | Practice Rounds | Table of Contents I. Performance Assessment 3 1. Marketing 3 1.1. Awareness and Accessibility 3 1.2. Product Attributes 4 1.3. Customer Survey Scores 5 2. Production / HR 6 2.1. Analysis 6 2.2. Productivity Improvements 8 3. Finance 9 4. Balanced Scorecard 9 II. Competitive Strategy Evaluation 11 1. Strategy and Competencies 11 2. Specific Decisions 12 3. Competitive Advantage 13 I. Performance Assessment (Desiree) 1. Marketing 1.1. Awareness and Accessibility Andrews’ marketing efforts can and should be improved in the formal simulation. We understand that in order to gain market share, we must ensure customers are aware of our products and can easily purchase them. We intend to invest more in marketing in the early rounds of the simulation to maximize awareness and accessibility in order to spend less in subsequent rounds to maintain adequate levels. We intend to achieve a minimum of 80% awareness by round 4 for all of our primary products, though we will likely continue on a similar course with regard to accessibility. Unfortunately, due to what we believe to be an unexplained glitch in the system, our awareness dollars seemed to be wasted on our new products. The primary evidence of this lies with Apex, a new product introduced in practice round 2. Apex started with 25% awareness as a new product in round 2. We invested...
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...look for new territories. So it should fully understand its position and create fitting strategic plans. Analysing the external environment The general environment Demographic----high Speaking of the clothing products, population immediate influences customers’ real and potential demands to the brand. In fact, demands always far exceed supply and products are sold out very early in such countries, especially in New Zealand. It can be noticed that the population between newborn and 14-year old are the major customers of its market. Economic----high In terms of each area’s economic, the consumption level should be mentioned. Taking the United States as an example, the whole cloth market earned US$172.8 billion in 2004 which occupied 22 percent of the total sale of global apparel. Because of the growth of each family’s income, the data would also increase year by year which presents a good vista to the cloth profession. Technology----high In order to adapt the market change, the enterprise should sum up the existing management frequently and seek for the new ways to satisfy customers’ new demands. Conclusion Pumpkin Patch was early enough to cater to the world trend. The target...
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