here we largely describe the demand model for the beverage industry, particularly breweries. Breweries work through the distributors to ship beer to the retail establishments which include Bars, restaurants, and liquor stores.
What is important for them to brew and ship the beer is the shipment to retail. Shipment to retail is driven by the final beer consumption by the beer drinkers. The demand here is seasonally driven by major holidays and also by regional events like major football games and the Super Bowl.
Additionally demand could be influenced by promotional activities by the retail establishments as well.
The major component of the brewery dmeand is driven by what is shipped out to retail as the retail establishments determine their stocking levels based on their pull through. The shipments to retail from the distributors is a key independent variable in determing the supply chain activity.
Both the inventory at the distributor as well as the Shipments to reatil are considered in deriving the outbound shipment plan. Competitive activity is also a major factor in estimating the retail demand.
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