Demand Analysis consists of calculating demand for the industry and for products within the industry. Your first task is to develop/demonstrate skills in calculating total industry demand. Your second task is to develop/demonstrate skills in calculating product demand by segment.

1. Calculating Total Industry Demand
2. 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 0 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: Sensor Industry Sales

Sensor 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 sensor Industry Demand by Market Segment for 8 Years.

Segment	Year or Round 0	Year or Round 1	Year or Round 2	Year or Round 3	Year or Round 4	Year or Round 5	Year or Round 6	Year or Round 7	Year or Round 8
Traditional	7,387M	8,067M
Low End
High End
Performance
Size

The Andrews Corporation seeks to estimate sales for each of its products in the various market segments within the sensor industry. To better understand which products compete in which industry (or market) segments, please refer to Table 2 below.

Table 2: The Andrews Corporation Product Offerings by Industry Segment

The AndrewsCorporation
Industry Segments	Traditional	Low End	High End	Performance	Size
Product Offering	Able	Acre	Adam	Aft	Agape