A Demand Management Plan for Wild Dog Coffee Company: Forecasting, Inventory, and Staffing Integration
Overview
This demand management plan analyzes forecasting, inventory, and staffing models for Wild Dog Coffee Company to develop a scalable operational framework before launching a second location. The analysis uses linear regression to demonstrate that advertising expenditure explains 95.1% of espresso bean demand, and recommends a reorder point inventory system and buffered staffing model unified through weekly demand huddles to achieve supply chain agility.
What this coursework covers
- Executive Summary and Introduction: Overview of the demand management plan and business context for a single-location coffee company preparing to expand
- Forecasting Analysis: Linear regression analysis showing advertising expenditure impact on espresso bean demand with R² = 0.951
- Inventory Management: Comparison of inventory systems (ROP vs EOQ) considering 14-day perishability and zero-tolerance stockout policy
- Staffing Model: Service-optimized buffered staffing approach with cost-benefit analysis
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A Demand Management Plan for Wild Dog Coffee Company
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Executive Summary
This demand management plan assesses forecasting, inventory, and staffing models of the present one-location business operation of Wild Dog Coffee Company to determine an agile, scalable model to be used before the second store is launched. The data analysis proves that advertising resources are highly predictive of espresso beans demand (R2 = 0.95), which is just to confirm the intuition of owners that marketing has a proactive, instead of a responsive impact on customer behaviour. The recommended inventory system is reorder point (ROP) inventory system as opposed to economic order quantity (EDOQ) because of the 14-day perishability and zero-tolerance stock out policy. In the case of staffing, a buffered, service-optimized model guarantees the saving of coverage in all working hours and safeguards the brand experience in spite of increased labor costs. Vitally, these elements have to be unified by means of weekly cross-functional meetings known as demand huddles so that Demand-Supply Integration (DSI), which is one of the fundamental supply chain agility drivers, can be achieved. The regression output and staffing cost tables are available in the Appendix and all supporting calculations are presented in the Appendix.
A Demand Management Plan for Wild Dog Coffee Company
Introduction and Business Context
Demand management refers to a strategic operation of forecasting, inventory and labor coordination to optimize the supply capabilities and demand patterns of the customers (Krajewski & Malhotra, 2025).