QUESTION 2
Use the case below to answer the following question(s)
A certain restaurant located in a resort community is owned and operated by Karen Payne. The restaurant just completed its third year of operation. During this time, Karen sought to establish a reputation for the restaurant as a high quality-dining establishment that specialises in fresh seafood. The efforts made by Karen and her staff proved successful, and her restaurant is currently one of the best and fastest-growing restaurant in their neighbourhood.
Karen concluded that, to plan better 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 compiled the following data on total food and beverages sales for the three years of operation:
R= Zar = South African Rand (currency)
Perform an analysis of the sales data for the restaurant. Prepare a report that summarizes your findings, forecasts, and recommendations. Include the following too:
(a) A graph of the time series.
(b) An analysis of the seasonality of the data.
Indicate the seasonal indexes for each month
Comment on the high seasonal and low seasonal sales months.
Do the seasonal indexes make intuitive sense and why? Discuss.
(c) Stating any assumptions, you may make, provide forecast sales for January through December of the fourth year.
Discuss how and why these assumptions and forecasts were made.
(d) Discuss Recommendations as to when the system that you developed should be updated to account for new sales data that will occur.
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