Calculating Market Demand

The Industry Demand Analysis will help the Marketing and Production Departments understand future demand. Marketing can use the total demand for each segment as it creates a sales forecast. Production can use the results when making capacity buy and sell decisions.
You will need:

• The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round 0
• The Industry Conditions Report.
• At the top of each Segment Analysis page you will find each segment’s statistics (see example below). The top line is the total demand for the segment for last year (the Courier reports last years data). The fourth line tells you next years growth rate for the segment.
  To find out the coming years total demand, simply apply the growth rate to last years total demand.

* The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical.

For example, in the High End segment analysis on the left, Total Demand is 2554 and next years growth rate is 16.2%
Next years demand is calculated as follows:

Industry Demand Activity

For your purposes, complete the form below with the “average” scenario. Assume the Round 1 growth rates will continue into the future unchanged. This will give you some idea for potential market size. If you have time, try a worst case and best case scenario for Rounds 2 through 8. For worst case, assume, say, half the growth rate. For best case assume, say, 1.5 times the growth rate.
Use the information in the Courier to calculate the Round 1 demand for each of the segments. Once you have successfully entered the correct demand for Rounds 0 and 1, then the rest of the table will fill automatically.

Provide the word for these situations:

Ratio stating what is gained given what is put into a process (Output / Input)

The method or action that is carried out in an effort to achieving a strategic objective

Japanese word for continuous improvement as relating to operations

Situation in forecasting where demand is influenced by a pattern that repeats over a set period of time and is attributed to recurring events

Type of forecast that uses past data and operates under the assumption that the future will behave in a similar fashion to the past

Type of forecast that uses subjective (qualitative) inputs such as opinion, experience and/or judgement

Area of study that examines the interactions between people and elements of a system in an effort to better understand how the interactions take place in terms of physical motion, cognitive thought, and organizational structure

Quality tool that maps out the flow of a process using squares as actions and diamonds as decision points