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GTech Homework 13 - HW assignment 13
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10/15/24, 9:07 GTech Homew ork 13 - HWAM assignment 13
Vikram Ramanujam
ISYE
6501
Homework 13 11/21/201
9
Question 19.1: Describe analytics models and data that could be used to make good
recommendations to the retailer. How much shelf space should the company have, to
maximize their sales or their profit?
Of course, there are some restrictions – for each product type, the retailer imposed a
minimum amount of shelf space required, and a maximum amount that can be devoted;
and of course, the physical size of each store means there’s a total amount of shelf space
that has to be used. But the key is the division of that shelf space among the product
types.
For the purposes of this case, I want you to ignore other factors – for example, don’t
worry about promotions for certain products, and don’t consider the fact that some
companies pay stores to get more shelf space. Just think about the basic question asked
by the retailer, and how you could use analytics to address it.
As part of your answer, I’d like you to think about how to measure the effects. How will you
estimate the extra sales the company might get with different amounts of shelf space –
and, for that matter, how will you determine whether the effect really exists at all? Maybe
the retailer’s hypotheses are not all true – can you use analytics to check?
Think about the problem and your approach. Then talk about it with other learners, and
share and combine your ideas. And then, put your approaches up on the discussion
forum, and give feedback and suggestions to each other.
You can use the {given, use, to} format to guide the discussions: Given {data}, use
{model} to {result}. One of the key issues in this case will be data – in this case, thinking
about the data might be harder than thinking about the models
Answer:
There are 3 main questions asked in the homework prompt here:
A) How much shelf space should the company have, to maximize their sales or their profit?
B) How will you estimate the extra sales the company might get with different
amounts of shelf space?
C) How will you determine whether the effect really exists at all?
To look at how to solve these questions, we will split the assignment up into different
parts and use different analytical models at each step.
Step 1: Remove seasonality and random variance to obtain the average units of a
product sold on a weekly basis
Given {time series data, units sold of a product}
Use {Exponential smoothing}
about:bl 1
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