Case Problem: Forecasting Food and Beverage Sales
Data pertaining to the case will be provided and students will analyze the case using an appropriate analytic procedure.
Each student is required to submit a single Excel file through Canvas. The excel file should include a single worksheet as the cover page indicating name and several worksheets (one for each question) to address each question with detailed analysis and short summary. Please show all your analysis supporting your solution. Grading will be based on both analysis and final solution to each question.
>Data
2
2
4
0
2
0
152 6
3
7
3
193 2
http://ng.cengage.com/static/nb/ui/index.html?nbId=485763&nbNodeId=171858109&eISBN=9781337253901#!&parentId=171858158 1/2
Case Problem: Forecasting Food and Beverage Sales
The Vintage Restaurant, on Captiva Island near Fort Myers, Florida, is owned and operated by To better plan for future growth of the restaurant, Karen needs to develop a system that will Month Second Third January 242 263 282
February 235 238 255
March 232 247 265
April 178 193 205
May 184 193 210
June 140 149 160
July 145 157 166 3/1/2017 Print Preview
http://ng.cengage.com/static/nb/ui/index.html?nbId=485763&nbNodeId=171858109&eISBN=9781337253901#!&parentId=171858158 2/2
Month August 152 161 174
September 110 122 126
October 130 130 148
November 152 167 173
December 206 230 235
Managerial Report
Perform an analysis of the sales data for the Vintage Restaurant. Prepare a report for Karen 1. A time series plot. Comment on the underlying pattern in the time series.
2. Using the dummy variable approach, forecast sales for January through December of How would you explain this model to Karen?
Assume that January sales for the fourth year turn out to be $295,000. What was your
Month
Sales
1
2
4
2
2
3
5
3
23
4
1
7
8
5
18
6
14
7
145
8
15
9
1
10
10
13
11
12
20
13
26
14
238
15
24
16
19
17
18
149
19
157
20
161
21
1
22
22
1
30
23
167
24
230
25
28
26
255
27
265
28
205
29
210
30
160
31
166
32
174
33
126
34
148
35
173
36
235
Sheet2
Sheet3
Karen Payne. The restaurant just completed its third year of operation. During those three
years, Karen sought to establish a reputation for the restaurant as a highquality dining
establishment that specializes in fresh seafood. Through the efforts of Karen and her staff, her
restaurant has become one of the best and fastestgrowing restaurants on the island.
enable her to forecast food and beverage sales by month for up to one year in advance. The
following table shows the value of food and beverage sales ($1,000s) for the first three years
of operation:
First
Year
Year
Year
First
Year
Second
Year
Third
Year
that summarizes your findings, forecasts, and recommendations. Include the following:
the fourth year.
forecast error? If this error is large, Karen may be puzzled about the difference between your
forecast and the actual sales value. What can you do to resolve her uncertainty about the
forecasting procedure?