PepsiCo sells its soft drinks in approximately 400,000 retail establishments, su

Question

PepsiCo sells its soft drinks in approximately 400,000 retail establishments, such as supermarkets, discount stores, and convenience stores. Sales representatives call on each retail account weekly, which means each account is called on by a sales rep 52 times per year. The average length of a sales call is 75 minutes (or 1.25 hours). An average salesperson works 2,000 hours per year (50 weeks per year 40 hours per week), but each spends 10 hours a week on nonselling activities, such as administrative tasks and travel. How many sales people does PepsiCo need?

Explanation / Answer

Total Retail Establishment (A) 400000 No. of Calls per establishment in a year (B) 52 Total Calls to be Made (C=A X B) 20800000 Avg. Length of the per Call (In Hrs) (D) 1.25 Total Hrs required for all Calls (E = C X D) 26000000 Salesman Working Hrs for making Call per Year Total Working Hrs. per Salesman (F) 2000 Less: Time for doing non selling activities (G) 500 Net Salesman Working Hrs for Calling (H =F-G) 1500 No. of Sales People Required (E/H) 17333

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