Week 2 Case Study Busn 379

Week 2 Case Study

Jesse Dauenhauer

Managing Supply Operations

May 18, 2014

Case Study 1 Questions

1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models.

Three different forecasting applications that Hard Rock use are: long range forecasting, intermediate forecasting, and short-term sales forecasting. Hard Rock use long range forecasting to set a capacity plan. They use intermediate forecasting to lock in contracts with supplies for food products and store merchandise. They use short-term sales forecasting each month to determine food and labor for each individual café.

Hard Rock could start using demand-driven forecasting to help predict customer needs and wants, such as beverages, specific food items, and store merchandise. Hard Rock could also start using a forecast that helps predict when a certain area is hosting an event that will bring in extra customers. They could use that information to offer special offers to draw in customers. Another forecast that Hard Rock could use is customer surveys. Who better than to tell you what your short comings are than your own paying customers?

2. What is the role of POS system in forecasting at Hard Rock?

The POS system that Hard Rock uses is very vital to their company. The system captures every transaction that takes place in their cafes. Every drink that is ordered, every entrée that ordered, every merchandise item that is sold is tracked through their POS system. Having that sort of information allows them to track what is popular and what is not. What should be changed and what is vital to their company.

3. Name several other variables besides those mentioned in the case that could be used as good predictors of daily sales in each café.

Some other variables that Hard Rock could use to predict daily sales in each café could be:

* Locate marketing

* Special offers that individual cafes are...