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Forecasting at Hard Rock Café

Managing Operations Across the Supply Chain Trapanger Stephens DeVry University Dr.Thomas Knopp

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 behavior 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 satisfaction compared with real data from customer satisfaction surveys: o Relate customer satisfaction delivered by each employee. o Calculate the difference between the expected

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