Question

Shannon’s Brewery in Keller, Texas is expanding distribution to a number of cities along the I-35 corridor south from Dallas to the Gulf Coast. Shannon’s typically distributes through large distributors such as Ben E. Keith located in Denton, Texas. However, Shannon Carter, CEO of Shannon’s Brewery, wants to employ a series of missionary sales persons to service restaurants, bars, supermarkets, and liquor stores. Their job will be to promote Shannon’s craft beers to these retailers and encourage them to place orders with Shannon’s normal distributor in that area. Based on research, Shannon Carter has identified an initial 711 retailers that are potential adopters of his beers. He estimates that it will take ten visits per year to acquire and then service each account. Each sales call is expected to take 29 minutes. Assume a 40-hour work week for sales reps and that 50% of each rep's time will be consumed by non-selling tasks and travel time. How many missionary sales reps will Shannon need to hire? (Note: you must convert the time allotted for each sales call from minutes to hours.) Round your answer up to the nearest 1/10 of a rep (in reality, as noted above, you would round to the next whole rep).

Answer 1

We have to calculate the How many missionary sales reps will shannon need to hire,

Sales call needed in a year = 10

Total no.of sales call per year = 711*10 = 7,110

Each sales call require = 29/60 = 0.4833 hrs

One sale rep works for week = 40 hrs.

Out of 40 hrs only 20 hrs are available for making sales call.

Therefore,

No.of sales call made by one rep = Time available for making sales calls / Time taken for eachothers

No.of sales call made by one rep = 20 / 0.4833 = 42 visits.

A sales rep can make= 42*52 = 2184

Number of sales rep needed = 7110 / 2184 = 3.25 or 4.

Therefore,

Shannon needs to hire 4 missionary sales rep.