1. The problem is to understand how historical demand is calculated using population, average frequency of purchase, and number of orders per customer. 2. The formula for demand is: $$\text{Demand} = \text{Population} \times \text{Average Frequency of Purchase} \times \text{Number of Orders per Customer}$$ 3. Given the data for 2022: - Population = 4842 - Average Frequency of Purchase = 58 - Number of Orders per Customer = 1 4. Calculate demand for 2022: $$4842 \times 58 \times 1 = 280,836$$ 5. The historical demand given is 836,762, which suggests the units or scale might differ or additional factors are included. 6. Repeat for 2023 and 2024 similarly using the formula and given data. 7. This formula helps estimate demand based on customer base and purchase behavior. Final answer: The demand is calculated by multiplying population, average frequency of purchase, and number of orders per customer as shown in the formula above.