Demand Management Plan
FPX MBA 5016
Capella University
Megan Ribb
12/11/19
1
Demand Management Plan
Introduction:
Wild Dog Coffee Company is a locally owned coffee shop with only one location.
This company ser
...
Demand Management Plan
FPX MBA 5016
Capella University
Megan Ribb
12/11/19
1
Demand Management Plan
Introduction:
Wild Dog Coffee Company is a locally owned coffee shop with only one location.
This company serves various espresso products, a small breakfast and lunch menu, and a
limited evening menu. Wild Dog Coffee Company is looking to open an additional
location. At the new location the beverages/espresso beverages will remain the same but
they want to add additional menu items. However, before starting the process of opening
a new location Wild Dog wants to obtain reports and recommendations for demand
management including, forecasting, inventory and scheduling.
Impact:
After obtaining data from the previous six months to determine how many pounds
of beans are needed for month seven you must find the linear regression. The best way to
do this is fine the values of x (dollars), y (beans), xy, and x2. Once the values are
determined you can calculate the amount for month seven by using the liner equation of
Y= a+bx (linear). After completing the math for this equation it is determined that Wild
Dog Coffee will need 1253 pounds of beans and about $1350 for advertising. The graph
below shows the projected bean usage compared to advertising dollars for months one
through seven.
1 2 3 4 5 6 7
0
200
400
600
800
1000
1200
1400
1600
Expresso Bean Use and Advertising
Lbs/Beans
Linear (Lbs/Beans )
Advertising Dollars
Months
Amount of Use
After determining the linear equation, you must determine how many espresso
beverages the company will average each day for month seven. According to Wild Dog
data they use 1.5 ounces of beans for each beverage. There are 16 ounces in one pound,
which would equal about 42 pounds of espresso beans daily for month seven. With the 42
pounds of espresso beans being used, there will be about 445-446 beverages prepared
daily each day.
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