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SSI would like to determine its potential sales for the first year on the basis of the information in Question 3.
1. SSI would like to determine its potential sales for the first year on the basis of the information in Question 3. However, there is some concern that the estimate of average retail sales is too high. SSI Assumes only 40% of the participating merchants will actually achieve sales and reorders. 20% of the merchants are expected to have medium performance success and will only sell/order 75% of the average suggested order. Low performing merchants represent the remaining 40% and will achieve half the sales/order expected on average. Calculate the orders (separate initial and reorder quantities) for the 6-month trial period if 45% of merchants exclusively order/reorder small packs. Calculate the 2nd 6 months accounting for the dropout. (Round if necessary) Assume the performer ratios remain the same after the trial period.