Scenario 6

question 120

Multiple Choice

Scenario 6.1 Use the following to answer the questions.
Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
Refer to Scenario 6.1. What method should Angels use to forecast sales in new regions?

• A) Sales force survey
• B) Time series analysis
• C) Correlation method
• D) Market test
• E) Regression analysis

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Definitions:

SKU-Level Decisions

involves making strategic choices about product stocking, pricing, promotions, and inventory management at the specific stock keeping unit (SKU) level.

Forecasts

Predictions or estimates about future events, trends, or behaviors, often based on data analysis or modeling.

Flexibility

Flexibility in business operations refers to the ability to adapt to changes, modify schedules, and adjust processes quickly in response to new conditions or demands.

Workforce

The collective group of individuals engaged in work or employment, forming the human resources of an organization, company, or nation.