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Production and Operations Management

You own a group of convenience stores in North Carolina and are interested in developing a forecasting model to use in predicting the average daily sales of a given convenience store to guide future purchases or construction of additional stores. You have collected the following data on your current stores:
a. What factors should be used in forecasting daily sales and WHY?
b. You have been offered two stores for sale and can afford only one at this time. The first is 500 ft2, 6 parking places and in a neighborhood with a household income of 50,000/yr. The other is 560 ft2, 8 parking places in an area with a household income of 42,500/yr. Which store should have higher daily sales?

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2. You own a group of convenience stores in North Carolina and are interested in developing a forecasting model to use in predicting the average daily sales of a given convenience store to guide future purchases or construction of additional stores. You have collected the following data on your current stores:
Store Daily Sales Store Area Parking Spaces Household Income
1 1840 532 6 44,000
2 1746 478 4 51,000
3 1812 530 7 45,000
4 1806 508 7 46,000
5 1792 514 5 44,000
6 1825 556 6 46,000
7 1811 541 4 49,000
8 1803 513 6 52,000
9 1830 532 5 46,000
10 1827 537 5 46,000
11 1764 499 3 48,000
12 1763 490 4 48,000
13 1825 510 8 47,000
14 1846 516 8 45,000
15 1815 482 7 43,000
a. What factors should be used in forecasting daily sales and WHY?
Calculate the correlation between Daily Sales and other ...

Solution Summary

Production and operations management are examined.

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