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Siebel Hospitality Guide > Setting Up Products and Assets > Forecasting Product ConsumptionThe quantity of most products to be used at an event is normally entered in the product's line item quantity field. However, for some products, the quantity of the product used, which is used to forecast revenue, is calculated based on the number of attendees. For example, if a guest asks for coffee provided at a function for a specified number of guests, the hotel administrator would know from experience that approximately two out of five people drink coffee at such an event. In this manner, the hotel administrator may forecast the consumption for the product. This can help when forecasting the amount of revenue expected from this product according to the number of guests that use the product. NOTE: If a quantity is entered for a line item, then the line item value is used to calculate revenue rather than product consumption forecasting. This task is a step in Process of Setting Up Products and Assets. To forecast the consumption of a product
NOTE: In some cases, the percentage participation may be different from property to property. For example, in colder states, people may be more likely to drink hot coffee than in warmer states. In this instance, it is necessary to create different products with different values in the % Participation field. Example of How Product Consumption Forecasting WorksThe following example will attempt to illustrate how consumption forecasting works. Assume that the following values are entered for the coffee:
The calculation would be as follows: Number of attendees to consume product equals 100 X 0.8 = 80 Number of cups consumed equals 80 X 2 = 160 |
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