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There are a number of ways that Alliance can benefit from the data it is gathering. The fact that is still orders periodically according to normal patterns is a complete waste of this wonderful data that they are gathering. First, their normal case scenario should not be the end point of how they order but the beginning. The median order quantity for a given period will clearly have some variability, which implies that Alliance can calculate a standard deviation of this data. The standard deviation information will be the basis for ordering going forward.
The demand differs according to a number of factors. The more of these factors that Alliance can identify for a given product, the better it will be able to manage its order quantities. For example, it knows that demand for some products is seasonal, and for others weather-related. This means that given a forecast Alliance can determine the best order quantity for a given region. An extreme example -- right now it is in the Atlantic hurricane season. If a hurricane was forecast for Miami, one would expect that sales of bottled water would skyrocket. The minute the hurricane forecast is identified, the company should be sending extra bottled water to its South Florida stores. There are many products and weather conditions that have a correlation, and Alliance has the data to explore those correlations.
Promotions were determined to be another tricky area for Alliance, yet the company has the ability to determine correlations with promotions. Alliance can even calculate cross-correlations, such as figuring out if...
Business Case for Investment Business and technology investment Kudler Fine Foods is one of the food stores which have always worked towards satisfaction of its customers in every level. With the coming technology it has not been left out and has considered technology investment strategy that will see its customer feel a sense of satisfaction. The paper will analyze the business case for investment of Frequent Shopper Program in Kudler Fine Food. Scope Describing
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