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Number of mattresses in KSA

 

  • Households: 30M/3= 10M 
  • 10*(2 mattresses per house)= 20M 
  • replacement rate 10 years= 20/10= 2M / yr

 

how can I estimate the number of beds at Businesses such as Hotels and Hospitals. 

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Pedro
Coach
on Mar 14, 2022
Most Senior Coach @ Preplounge: Bain | EY-Parthenon | RB | Principal level interviewer | PEI Expert | 30% in October

Hotels and hospitals will be less than 20% of the total number, so it's fine to use use simplified assumptions (as per Udayans comment). But you should focus on being a bit more granular on the 80% of the general population.

E.g. some people keep them for longer… kids replace mattresses more frequently, etc… 

Also households is not the right driver. The number of mattresses depends on number of people (sleapling alone or in couples, and this depends mostly on age) not on households. Also some people have multiple homes… which mean multiple beds. Same thing on having rooms for visitors. 

So you are missing a lot of the complexity of the question.

Udayan
Coach
on Mar 14, 2022
Top Rated MBB coach | 300+ Real MBB offers | McKinsey Engagement Manager in NYC |15 Years Interviewing Experience

Hospital beds are usually taken as a fraction of people (1 bed per thousand people for example) as you don't typically need many beds at once. For other businesses (e.g., hotels) you can use a multiple - for example total demand put together is 25% of household demand and this includes all of hospitality and say educational institutions, military etc. You will need to justify the reasoning for why you choose a particular number.

Ian
Coach
on Mar 15, 2022
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

First of all, you've oversimplified the Households portion. You should segment by income.

Second, in terms of beds at Hotels (business/hospitals will be negligible) you can do either of the following:

1) Take a % factor (around 20%) of the Households answer

2) Split pop by Biz travelers and holidayers. Figure out how much each travels (i.e. # of weeks) and therefore number of beds needed. Consider occupancy rates as well (i.e. there will be x % more beds than needed)