Optimizing Resources to Better Forecast Future Profits
Advances in Business and Management Forecasting
ISBN: 978-1-78635-534-8, eISBN: 978-1-78635-533-1
Publication date: 18 July 2016
Abstract
In this chapter, inventory and sales data from a small business with seven showrooms are evaluated to forecast future sales and maximize total profits. In each showroom, three major brands of ceiling fans are sold and a limited amount of products from each brand are displayed. Each showroom varies in their sales volume, display capacity, and profit margins. Using historical data, the optimal display configuration was determined for each showroom; that is, the proportion of products from each brand to display in the limited display grid, while acknowledging existing constraints. Next using the optimal displays, profit for the next year is forecasted. Finally a comparison is made between actual and forecasted results and profits pre and post the optimal product display.
Keywords
Citation
Garwood, K.C., Strandberg, A.G. and Clements, N. (2016), "Optimizing Resources to Better Forecast Future Profits", Advances in Business and Management Forecasting (Advances in Business and Management Forecasting, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 3-17. https://doi.org/10.1108/S1477-407020160000011002
Publisher
:Emerald Group Publishing Limited
Copyright © 2016 Emerald Group Publishing Limited