Submitted by: Submitted by daniel6990
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Category: Business and Industry
Date Submitted: 12/07/2011 01:36 PM
Production Operations Management
Video Case Studies
Video Case 2: Forecasting at Hard Rock Café
1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models.
Sales forecasts:
* Long range forecasting: in setting a capacity plan
* Intermediate term forecasting: for locking in contracts for leather goods (used in jackets) and for food items as beef, chicken, and pork
* Short term forecasting: daily forecasts which contain the effect of special events in the town (including staff forecast)
Human Resources:
* Bonuses for managers: a 3-year weighted moving average is applied to cafe sales and if the cafe general managers exceed their targets, a bonus is computed
* Staff recruitment: Adapt the necessary workforce according expected demand.
* Staff management: Determine necessary roles on each section of the restaurant.
Menu planning/placement:
* Regression analysis.
* How could affect price variations on one product to the rest of the elements on the menu
* How could affect reorganizations of the menu to the sales.
Other possible areas of application:
* To include seasonal forecasting in the menu planning
* To predict customer behaviour changes.
* To apply forecasting to every single element of the menu.
* They could forecast "booming areas" to build a Hard Rock Cafe there.
* Forecasting of customer satisfaccion compared with real data from customer satisfaction surveys:
* Relate customer satisfaction delivered by each employee.
* Calculate the difference between the expetected global customer satsifaction against the real customer satisfaction for each employee.
* If real data outperforms data: bonuses for those employes attending that table.
* If real data is below forecasting: employee revision
2. What is the role of the POS system in forecasting at...