Questions:

1.) Describe the (3) different forecasting application at Hard rock.

Long range forecasting: in setting a capacity plan. Intermediate term forecasting: for
locking in contracts for leather goods (used in jackets) and for food items as beef,
chicken, and pork. And Short term forecasting which conducted each month, or
whenever there’s a special event.

2.) Name (3) other areas in which you think Hard rock could use forecasting model.

 Human resources
 Sales forecast
 Menu planning

3.) What’s are the role of POS system in forecasting at Hard rock?
 POS stands for Point of Sale and could be defined as “the location where a
transaction occurs”. In Hard Rock it is mainly used to collect data about every
person who walks through a Hard Rock café’s door. So in general the POS
systems in Hard Rock cafe's collect data of nearly all customers to get used to
their habits and preferences.
4.) Justify the use of the weighting system used for evaluating managers for annual
bonuses.
Managers performance is evaluated by comparing actual sales with what could be considered a
normal behaviour of the time series. The weighted moving average system considers recent
trends, and old data are usually little taken into account, which is predominant for future sales.
The 3-year weighted moving average ensures that managers take care about the company in
long term, because they want to maximize their future earnings, causing a long appreciation of
the company itself.

5.) Name several variables besides those mentioned in the case that could be used as good
predictors of daily sales in each café.
 Customers ages
 Customers sexes
 Customers preferences for food, drinks, clothes, etc.
Some additional variables that could be useful to make more accurate forecasting could be:
 Weather conditions.
 Sport events on TV.
 Events on the city: cultural events, sport events, etc.
 Public holidays.
 Birth rate.
 Evolution of teenager’s population.
 Number of business centers around the restaurant: For business meals.
 Number of airlines operating in the local airport.
 Number of visitors to the city.
 Customer satisfaction data.