MBA FPX 5016 Assessment 2 Demand Management Plan for Wild Dog Coffee Company 

Introduction 

In the ultramodern competitive business geography, companies face fierce competition to attract and retain guests. Demand plays a pivotal part in icing that a company operates efficiently and remains competitive. A well- developed demand operation plan acts as a design for a company’s success by not only vaticinating unborn demand but also by aligning force with demand.

This visionary approach enables companies to seize openings, optimize coffers, and acclimate to changing request conditions. Wild Dog Coffee Company, a locally- possessed business with a single coffee shop, aims to expand its operations by opening an alternate position. 

The company offers a wide variety of espresso drinks, along with a small breakfast and lunch menu. While the core processes of the business will remain the same, there may be slight variations in the menu. This report aims to give an in- depth analysis of Wild Dog Coffee Company’s demand operation plan, including soothsaying, force scheduling, staffing scripts, and recommendations for effectively managing demand. 

Impact of Advertising on Product Demand 

Advertising significantly impacts product demand by impacting consumers’ tastes and preferences. It helps in creating brand mindfulness and allows businesses to communicate the benefits of their products or services effectively. By drawing attention to what a brand offers, advertising encourages consumers to try new products, eventually boosting demand.

A well- executed advertising crusade can target niche parts successfully and lead to increased client engagement. Still, advertising juggernauts must be precisely planned to avoid negative comprehension, as inadequately executed announcements can harm a brand’s image( Krajewski, Malhotra, & Pitzman, 2019). In the case of Wild Dog Coffee Company, advertising expenditures are appreciatively identified with espresso demand. As advertising budgets increase, so does the demand for espresso sap, making advertising a crucial motorist for attracting new guests. 

Analyze Demand Forecasting for Espresso Beans 

Demand soothsaying involves assaying literal deals data to prognosticate unborn demand. A flexible demand operation plan allows companies to acclimatize to business growth and request oscillations( Banker, 2017). For Wild Dog Coffee Company, demand soothsaying focuses on prognosticating espresso bean consumption grounded on advertising expenditures.

The literal data handed reveals a clear correlation between the quantum spent on advertising and the demand for espresso sap. The relationship is further anatomized through direct retrogression, where the retrogression equation is used to prognosticate unborn demand. For example, with an advertising budget of$ 1,350 for the forthcoming month, Wild Dog Coffee Company is ready to bear roughly 1,253 lbs. of espresso sap. 

Table: Relationship Between Advertising Dollars and Product Demand   

Month	Advertising Dollars Spent	Lbs. of Espresso Beans Used
January	$1,050	987
February	$1,500	1,412
March	$1,000	1,020
April	$1,250	1,140
May	$1,500	1,322
June	$1,500	1,399

This table highlights the direct relationship between advertising expenditures and espresso bean demand. The data shows that increases in advertising bonds constantly lead to advanced demand for espresso sap, while reductions in advertising result in a corresponding decline in demand. 

Inventory Management Analysis 

Effective force operation is essential for balancing the costs of holding force while icing acceptable force. Wild Dog Coffee Company, being a small business, needs to precisely manage its force to avoid inordinate holding costs and implicit loss due to the short shelf life of espresso sap. The company faces the challenge of ordering and storing the applicable quantum of force while considering the holding costs, which are estimated to be$ 1.88 per unit per month. The company’s demand for espresso sap is roughly 1,400 lbs. per month, with sap packed in 25- pound packages. 

Approaches to Inventory Management 

Wild Dog Coffee Company can borrow two force operation approaches: Economic Order Quantity( EOQ) and Material demand Planning( MRP). 

• Economic Order Quantity( EOQ) is a system used to determine the optimal number of units a company should order to minimize force costs. By using the EOQ model, Wild Dog Coffee Company can maintain an acceptable force position without tying up too important capital. 
• Material demand Planning( MRP) is a motorized system that calculates the number of raw accoutrements needed to meet client demand while minimizing force situations. MRP works backward from the final product to determine the necessary factors and raw accoutrements . For Wild Dog Coffee Company, MRP can help insure a smooth inflow of force to meet client demand efficiently

Recommendation of Inventory Management Plan 

It’s recommended that Wild Dog Coffee Company use the EOQ model for its force operation. This approach would allow the company to order the optimal volume of espresso sap while minimizing holding costs. Since the company only stocks one type of espresso bean and the demand rate is fairly steady, EOQ is a suitable and cost-effective result for managing force. 

Business Scheduling Management 

Effective business scheduling is essential for hand productivity and satisfaction. The scheduling process involves allocating coffers and time to insure smooth business operations. Wild Dog Coffee Company has two different staffing models, each with its advantages and disadvantages. 

Table: Comparison of Staffing Scenarios    

Scenario	Staffing Model	Weekly Payroll Cost
Scenario 1	1 full-time barista, 3 part-time baristas, 1 full-time non-barista, 2 part-time non-baristas	$2,240

Both scripts involve fixed schedules, which offer pungency for workers. script 1 has advanced payroll costs but may offer further stability for part- time workers, while script 2 reduces payroll costs and provides a better balance between full- time and part- time staff. 

Flexible Work Schedule and Turnover Considerations

In this script, there’s no overtime, meaning workers wo n’t admit work calls at unusual or inconvenient times. Sundays are designated as days out, analogous to script 1. Still, in script 2, the scheduling becomes more flexible since there are four part- timenon-baristas. Wild Dog Coffee Company should be prepared for advanced development rates among part- time workers.

However, the company can anticipate this and acclimate consequently, If a hand leaves. Some disadvantages of script 2 include the eventuality for high hand development. Since part- timenon-baristas work fixed hours each week with changing schedules, this could contribute to advanced development. Also, frequent changes in staff might lead to inconsistencies in service quality, as newnon-barista workers will need to acclimate and learn the company’s norms. 

Recommended Staffing Plan for Wild Dog Coffee 

For an effective scheduling model, script 2 is recommended for several reasons. Numerous workers prefer a fixed work schedule, which Wild Dog Coffee Company can apply to reduce costs while maintaining productivity. A fixed schedule, combined with the absence of overtime, enhances hand satisfaction and increases overall effectiveness. The proposed staffing model includes full- time baristas paired with part- timenon-baristas. This structure ensures work is divided unevenly, which helps maintain service thickness.

Part- timenon-baristas will learn from full- time workers, reducing the need for expensive overtime payments. A cost comparison between the two scripts shows that script 1 has a daily cost of$ 2,240, whereas script 2 costs$ 2,120. Over 52 weeks, script 2 would save the company$ 6,000 annually, making it a more provident option. 

Conclusion 

Wild Dog Coffee Company is poised for growth, with plans to expand into a new position. Still, expansion brings challenges, particularly the need for a robust Demand operation Plan. This plan will help the company allocate coffers more effectively, exercising literal data to read unborn demand. Advertising expenditure has been shown to have a significant impact on the demand for espresso sap, with a friction of 95, leaving only 5 attributed to other factors. Maintaining applicable force situations is another critical factor for the company’s effectiveness.

By employing the Economic Order Quantity( EOQ) system, Wild Dog Coffee Company can minimize both holding and ordering costs, icing they meet demand without overstocking. Also, hand productivity and satisfaction are essential, and a fixed schedule with a blend of full- time and part- time workers is recommended. This model not only reduces costs but also prevents the need for overtime, giving workers more pungency and work- life balance. While Wild Dog Coffee Company faces several challenges, enforcing a strategic Demand operation Plan will help achieve its long- term pretensions. 

MBA FPX 5016 Assessment 2 Demand Management Plan for Wild Dog Coffee Company 

Krajewski, L. J., Malhotra, M. K., & Pitzman, L. P. (2019). Operations management: Processes and supply chains (12th ed.). New York, NY: Pearson. Lee, J., Brown, M., & Fairchild, G. (1989). Some observations on the impact of advertising on demand. Agribusiness, 5(6), 607-618.

 doi: 10.1002/1520-6297(198911)5:63.0.co;2-i 

Material Requirements Planning (MRP) Definition. (2021). Retrieved from https://www.investopedia.com/terms/m/mrp.asp 

Ong, M. (n.d.). 5 Ways to make employee scheduling easy. Bplans. Retrieved from https://articles.bplans.com/5-ways-to-make-employee-scheduling-easy

Table: Cost Comparison Between

 Scenario 1 and Scenario 2    

Scenario	Weekly Cost	Annual Cost	Savings per Year
Scenario 1	$2,240	$116,480	$0
Scenario 2	$2,120	$110,240	$6,000

Table: Employee Turnover Risk    

Staff Type	Fixed Hours	Turnover Risk	Impact on Service
Full-Time Baristas	Yes	Low	Consistent service quality
Part-Time Non-Baristas	Yes	High	Potential for inconsistency

Table: Scheduling Flexibility    

Schedule	Overtime Availability	Flexibility for Employees	Cost Impact
Fixed Work Schedule	No	High	Reduces overtime costs
Part-Time Non-Baristas	Yes, flexible	Medium	Higher turnover potential