S&OP Planning
The Sales and Operation Planning was created after conducting market research data for:
- Population
- Users in the Bag and Accessories industry, which were narrowed down to users by age, gender and income according to Kala's target segments.
- Market penetration rate
After estimating the total number of potential clients in Miami an estimated revenue has been calculated to determine estimated sales by looking into:
- Average revenue per user
- Tourist flow per year and estimated expenditure per tourist
Once the total revenue had been calculated, the consolidated figures for the product mix % has been applied to divide the total revenue among the 6 different products.
Once the revenue per product was calculated it was possible to estimate the number of units demanded by dividing the revenue per product by the sales price per unit. Seasonal fluctuation in the demand and big national holidays which influence the demand were also incorporated in the calculations.
The purchasing plan has been calculated on the basis of estimated demand for the next quarter + minimum safety stock rounded up to a round number of boxes (10,20,30 etc) for the purpose of optimizing space during transportation and cost efficiency when purchased in bulk.
For more detailed information and exact figures please download the word file bellow.
The full S&OP table can be downloaded as excel file bellow.
