HR café was started in 1971 with one pub in London and expanded to 129 restaurants in more than 40 countries. This raised the necessity for an improved forecasting system. The firm uses long-term forecast to set capacity plans and short term forecast to get contracts on leathers and food items. The firm adopts a point-of-sales (POS) system, which records the entry of each sale. Each sales entry represents one customer and the headquarters database receives every sales data. The forecast is made on the basis of data, the guest counts, dinner sales, retail sales, and concert sales at each café. The firm also adopts information of the past year for the particular day and the information from the tourist board for the forthcoming program. A bonus is given to managers who exceed their targets. The 3-year weighted average technique is adopted to estimate sales. They use multiple regressions to measure the impact of the demand of one item over others. The placements of food items are also taken as a measure to forecast demand. To determine: To find the expected guest count when advertising is $65,000.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 2.5VC

Summary Introduction

Introduction:

HR café was started in 1971 with one pub in London and expanded to 129 restaurants in more than 40 countries. This raised the necessity for an improved forecasting system. The firm uses long-term forecast to set capacity plans and short term forecast to get contracts on leathers and food items. The firm adopts a point-of-sales (POS) system, which records the entry of each sale.

Each sales entry represents one customer and the headquarters database receives every sales data. The forecast is made on the basis of data, the guest counts, dinner sales, retail sales, and concert sales at each café. The firm also adopts information of the past year for the particular day and the information from the tourist board for the forthcoming program.

A bonus is given to managers who exceed their targets. The 3-year weighted average technique is adopted to estimate sales. They use multiple regressions to measure the impact of the demand of one item over others. The placements of food items are also taken as a measure to forecast demand.

To determine: To find the expected guest count when advertising is $65,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Use regression analysis to forecast the point at which Swansonneeds to '·build out" the top two floors of the new building,namely, when demand will exceed 16,000 births.

24,000-seat arena that is home to the city’s professional basketball and ice hockey teams and that hosts a variety of concerts, trade shows, and conventions throughout the year. The hotel has experienced the following occupancy rates for the past 9 years, since the coliseum opened. Compute an exponentially smoothed forecast with an α value of .20. According to the result from Excel and/or POM-QM, the forecast for the year 5 would be (type number only, two decimals) 1 83 2 78 3 75 4 81 5 86 6 85 7 89 8 90 9 86

Grace owns and operates a chain of 12 vegetable protein "hamburger" restaurants in northern Luzon. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of $240,000? $300,000? Vince Coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were: Given: Month Sales January 825 February 756 March 808 April 950 May 678 June 875 July 695 August 589 September 690 October 890 November 1030 December 1525 a. Compute a 3-month moving average demand forecast for each month from June through December. b. Compute a 5-month moving average demand forecast for each month from June through December. c. Calculate the MSE…