Explore BrainMass
Share

Explore BrainMass

    Forecasting Food and Beverage Sales

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Vintage Restaurant is on Captiva Island, a resort community near Fort Myers, FL. The restaurant, which is owned and operated by Karen Payne, has just completed its third year of operation. During that time, Karen has sought to establish a reputation for the restaurant as a high-quality dining establishment that specializes in fresh seafood. The efforts by Karen and her staff have proven successful, and her restaurant has become one of the best and fastest-growing restaurants on the island. Karen has concluded that to plan for the growth of the restaurant in the future, she needs to develop a system that will enable her to forecast food and beverage sales by month for up to one year in advance. Karen has the following data on total food and beverage sales for the three years of operation. [See below for data.]

    Perform an analysis of the sales data for the Vintage Restaurant. Prepare a report for Karen that summarizes your findings, forecasts, and recommendations. Include:

    a. A graph of the time series.

    b. An analysis of the seasonality of the data. Indicate the seasonal indexes for each month, and comment on the high and low seasonal sales months. Do the seasonal indexes make intuitive sense? Discuss.

    c. A forecast of sales for January through December of the fourth year.

    d. Recommendations as to when the system that you have developed should be updated to account for new sales data.

    e. Any detailed calculations of your analysis in the appendix of your report.

    f. Assume that January sales for the fourth year turn out to be $295,000. What was your forecast error? If this is a large error, Karen may be puzzled about the difference between your forecast and the actual sales value. What can you do to resolve her uncertainty in the forecasting procedure?

    Lost Beverage and Food Sales Case: Vintage Restaurant Sales (in $1000's)

    MONTH First Year Second Year Third Year
    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
    August 152 161 174
    September 110 122 126
    October 130 130 148
    November 152 167 173
    December 206 230 235

    © BrainMass Inc. brainmass.com May 20, 2020, 3:19 pm ad1c9bdddf
    https://brainmass.com/statistics/central-tendency/122600

    Solution Preview

    Be sure to read the case thoroughly, analyze the raw data, and answer all questions as required per case instructions. Prepare a 700 to 1,400-word case summary that meets the case study parameters defined in Week Two. (Reference: Anderson, Sweeney, Williams, 2002, p. 264) Cut and paste the results from EXCEL or MiniTab into your paper.

    The Vintage Restaurant is on Captiva Island, a resort community near Fort Myers, Florida. The restaurant, which is owned and operated by Karen Payne, has just completed its third year of operation. During that time, Karen has sought to establish a reputation for the restaurant as a high-quality dining establishment that specializes in fresh seafood. The efforts by Karen and her staff have proven successful, and her restaurant has become one of the best and fastest-growing restaurants on the island. Karen has concluded that to plan for the growth of the restaurant in the future, she needs to develop a system that will enable her to forecast food and beverage sales by month for up to one year in advance. Karen has the following data ($1000s) on total food and beverage sales for the three years of operation. The data can be found in an Excel spreadsheet (Lost Beverage and Food Sales).

    Perform an analysis of the sales data for the Vintage Restaurant.

    Prepare a report for Karen that summarizes your findings, forecasts, and recommendations. Include:

    a. A graph of the time series.

    I put the data into an Excel spreadsheet, then rearranged it, so that all the months were in one column, and all the sales data were in a second column.

    As you can see, the monthly sales fall between $100,000 and $300,000, with the highest sales occurring around January of each year, and the lowest sales occurring around September. I also think that the ...

    $2.19

    ADVERTISEMENT