A Convenience Store Recently Started to Carry a New Brand

question 66

Short Answer

A convenience store recently started to carry a new brand of iced tea in its territory. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. At the end of April, the average monthly sales volume of the new drink was 700 cans and the trend was + 50 cans per month. The actual sales volume figures for May, June, and July are 760, 800, and 820, respectively. Use trend-adjusted exponential smoothing with α= 0.2 and β= 0.1 to forecast usage for June, July, and August.

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Definitions:

Quick Preparation

Referring to food or meals that are designed to be prepared and served in a short amount of time with minimal effort.

Recipe Contest

A promotional activity or event where participants submit their original recipes for a chance to win prizes.

In-Store Demonstrations

Promotional events held within retail locations where products are showcased and demonstrated to potential customers.

Bundle Pricing

A marketing strategy where multiple products or services are packaged together and sold at a single price, often at a discount compared to buying each item separately.