Problem 1

If the market is classified into Class A and Class B where class A includes 400 accounts while class B
includes 600 accounts, Class A requires 20 calls per year, and class B requires 10 calls per year.

The sales reps do 5 calls per day sell 5 days in a week and work 50 weeks in a year.

Determine the number of reps needed.

Number of reps = total workload in a market/workload one rep can handle

Market workload

Customer class No of accounts Calls/year Total calls

Class A 400 20 8.000
Class B 600 10 6.000
14.000

One’s rep workload

= calls/day X selling days/week X working weeks = 5X5X50 = 1250

No of reps needed = 14.000/1250 = 12 reps

Problem 2

Customer class No of accounts Monthly calls needed

Class A 100 10
Class B 200 5
Class C 500 2

Sales people work 8 hours/day; 5 days /week; 50 weeks/year;

A typical sales call: 2 hours

Calculate the number of sales people needed.

Market workload

Customer class No of accounts Calls per year Total calls

A 100 10X12 = 120 12.000
B 200 5X12 = 60 12.000
C 500 2X12 = 24 12.000
36.000

One’s rep workload

=calls/day X selling days/week X working weeks = 8/2 X 5 X 50 = 1000

No of reps needed = market workload / rep’s workload = 36.000/1000 = 36 reps

Problem 3

The annual working days in a company are 350 and the average sales rep makes 6 calls per day.

The total number of customers is 1600 classified as such:

200 – large (A)

400 – medium (B)

1000 – small (C)

The frequency calling of customers is:

- A: twice a month;
- B: once a month
- C: once every two months

The company will expand in 5 new territories, therefore: 3 reps will be promoted, 5 will retire, and 4 will
resign.

How many sales reps are needed?

Market workload

Customer class No of accounts Calls per year Total calls

A 200 2 X 12 = 24 4800
B 400 1 X12 = 12 4800
C 1000 0.5X12 = 6 6000
15.600

Reps’ workload

= 350 X 6 = 2100

Total sales workload = 15.600/2.100 = 8 reps

Total number of reps needed

8 +5 new+ 3 promoted= 16 reps