A. Calculating Total Industry Demand 1. Calculate Total Industry Demand for next year. To do so, convert the percentage growth rate for next year to a decimal. For example, in the traditional segment (Table 1 below), next year's growth rate of 9.2% converts to 0.092. To save a step, add "1" to the decimal. 1 +0.092 = 1.092. To calculate demand for Year or Round 1, Multiple 1.092 by the demand for Round 0. The demand for Year O has been provided below, you will need to go to the CAPSTONE COURIER Report, year 0 to obtain the demand for the other product market segments. 1.092 X 7,387 M = 8,067 M For this question, complete Form 1 below identifying segment demand for the end of each round. To complete Form 1, assume that Next Year's Growth is the same through year 8 for each segment found in Table 1 (below). You will need to go to the 'Industry Conditions Report' in CAPSIM to obtain the industry.growth rates for the Low End, High End, Performance and Size market segments. Table 1: Automobile Industry Sales Automobile Industry Sales Market Segments Traditional Low End High End Performance Size Next Year's Growth Rate (for each segment) 9.2% Form 1: Calculate Total Automobile Industry Demand for 8 Years. Year or Segment Year or Round 0 Year or Year or Year or Year or Round 2 Round 3 Round 4 Round 5 Year or Year or Year or Round Round 7 Round 8 6 Round 1 Traditional 7,387M 8,067M Low End High End Performance Size Form 2: Product Count Method Product Count. This simple method gives you an idea, all things being equal, of average sales by product count within the industry. The calculation is easy. Simply divide the anticipated industry segment sales by the Product Count. For example, in the above traditional segment, if the product count is seven (the number of competitors in the segment and Chrysler), then divide the expected industry demand of 8,067 units by 7 for an average sales figure of 1,152 units. The New Chrysler Motors Corporation Industry Segments Traditional Low End High End Performance Size Product Offering Chrysler Plymouth Imperial Dodge Valiant Industry Demand (Units in Thousands) 14,937 Product Count in Segment 7 9 7 7 6 Sales Forecast (Units in Thousands) 2,134 A. Calculating Total Industry Demand 1. Calculate Total Industry Demand for next year. To do so, convert the percentage growth rate for next year to a decimal. For example, in the traditional segment (Table 1 below), next year's growth rate of 9.2% converts to 0.092. To save a step, add "1" to the decimal. 1 +0.092 = 1.092. To calculate demand for Year or Round 1, Multiple 1.092 by the demand for Round 0. The demand for Year O has been provided below, you will need to go to the CAPSTONE COURIER Report, year 0 to obtain the demand for the other product market segments. 1.092 X 7,387 M = 8,067 M For this question, complete Form 1 below identifying segment demand for the end of each round. To complete Form 1, assume that Next Year's Growth is the same through year 8 for each segment found in Table 1 (below). You will need to go to the 'Industry Conditions Report' in CAPSIM to obtain the industry.growth rates for the Low End, High End, Performance and Size market segments. Table 1: Automobile Industry Sales Automobile Industry Sales Market Segments Traditional Low End High End Performance Size Next Year's Growth Rate (for each segment) 9.2% Form 1: Calculate Total Automobile Industry Demand for 8 Years. Year or Segment Year or Round 0 Year or Year or Year or Year or Round 2 Round 3 Round 4 Round 5 Year or Year or Year or Round Round 7 Round 8 6 Round 1 Traditional 7,387M 8,067M Low End High End Performance Size Form 2: Product Count Method Product Count. This simple method gives you an idea, all things being equal, of average sales by product count within the industry. The calculation is easy. Simply divide the anticipated industry segment sales by the Product Count. For example, in the above traditional segment, if the product count is seven (the number of competitors in the segment and Chrysler), then divide the expected industry demand of 8,067 units by 7 for an average sales figure of 1,152 units. The New Chrysler Motors Corporation Industry Segments Traditional Low End High End Performance Size Product Offering Chrysler Plymouth Imperial Dodge Valiant Industry Demand (Units in Thousands) 14,937 Product Count in Segment 7 9 7 7 6 Sales Forecast (Units in Thousands) 2,134
