FXP 5016 Assessment 2| Wild Dog Coffee: Demand
Management Plan|2025 Update with complete solution.
FPX 5016
Wild Dog Coffee: Demand Management Plan
November 7, 2024
1
, Table of Contents
1. Introduction. .................................................................................................. 3
2. Impact of Advertising on Product Demand… ............................................... 3
3. Forecasting Model Interpretation… ...............................................................3
4. Inventory Management Analysis…............................................................... 5
a. Continuous Review (Q) System… .................................................... 5
b. Periodic Review (P) System… .......................................................... 6
5. Wild Dog Coffee: Scheduling Management Analysis… ............................. 7
6. Inventory Management System & Staffing Recommendation… ................. 10
7. Appendix… .................................................................................................. 12
8. References… ................................................................................................ 16
2
, Introduction
To ensure success for any company, it is imperative to analyze critical business aspects
to ensure everything is operating efficiently. This demand management plan will analyze the
impact of advertising on product demand, assess and interpret the forecasting model, perform an
inventory management analysis interpreting the two management systems, and perform a
scheduling management analysis. I will then recommend the best method for Wild Dog Coffee
Company.
Impact of Advertising on Product Demand
Wild Dog Coffee Company acknowledges the increasing impact that advertising has on
product demand. Advertising promotes a product or service to the public, and it is evident from
the data provided that the more money is invested in advertising, the more products will be sold.
Although advertising is not the sole variable determining the amount of beverages sold, there is a
clear indication that it does contribute. A table showing the bean usage and dollar amount spent
on advertising is provided below in Figure 1.1. This chart helps provide insight into the
difference in demand for our product monthly, ensuring we have adequate products for each
month. This data is used to create a linear regression chart, essential in forecasting the number of
beans needed in month 7.
Month Lbs/Beans Advertising Dollars
1 987 $1,050
2 1,412 $1,500
3 1,020 $1,000
4 1,140 $1,250
5 1,322 $1,500
6 1,399 $1,500
Figure 1.1 Espresso Bean Use and Advertising Dollars Spent per Month
Forecasting Model Interpretation
A clear visualization of the positive linear correlation between dollars spent and beans
sold is provided in Figure 1.2 below. It is noticeable that each plot falls close to the trend which
indicates a close relationship between dollars spent and the amount of beans needed. The
3
Management Plan|2025 Update with complete solution.
FPX 5016
Wild Dog Coffee: Demand Management Plan
November 7, 2024
1
, Table of Contents
1. Introduction. .................................................................................................. 3
2. Impact of Advertising on Product Demand… ............................................... 3
3. Forecasting Model Interpretation… ...............................................................3
4. Inventory Management Analysis…............................................................... 5
a. Continuous Review (Q) System… .................................................... 5
b. Periodic Review (P) System… .......................................................... 6
5. Wild Dog Coffee: Scheduling Management Analysis… ............................. 7
6. Inventory Management System & Staffing Recommendation… ................. 10
7. Appendix… .................................................................................................. 12
8. References… ................................................................................................ 16
2
, Introduction
To ensure success for any company, it is imperative to analyze critical business aspects
to ensure everything is operating efficiently. This demand management plan will analyze the
impact of advertising on product demand, assess and interpret the forecasting model, perform an
inventory management analysis interpreting the two management systems, and perform a
scheduling management analysis. I will then recommend the best method for Wild Dog Coffee
Company.
Impact of Advertising on Product Demand
Wild Dog Coffee Company acknowledges the increasing impact that advertising has on
product demand. Advertising promotes a product or service to the public, and it is evident from
the data provided that the more money is invested in advertising, the more products will be sold.
Although advertising is not the sole variable determining the amount of beverages sold, there is a
clear indication that it does contribute. A table showing the bean usage and dollar amount spent
on advertising is provided below in Figure 1.1. This chart helps provide insight into the
difference in demand for our product monthly, ensuring we have adequate products for each
month. This data is used to create a linear regression chart, essential in forecasting the number of
beans needed in month 7.
Month Lbs/Beans Advertising Dollars
1 987 $1,050
2 1,412 $1,500
3 1,020 $1,000
4 1,140 $1,250
5 1,322 $1,500
6 1,399 $1,500
Figure 1.1 Espresso Bean Use and Advertising Dollars Spent per Month
Forecasting Model Interpretation
A clear visualization of the positive linear correlation between dollars spent and beans
sold is provided in Figure 1.2 below. It is noticeable that each plot falls close to the trend which
indicates a close relationship between dollars spent and the amount of beans needed. The
3
