What sort of conclusions can you draw by analysing the weekly sales data? THE WI

Question

What sort of conclusions can you draw by analysing the weekly sales data? THE WINE PURCHASING PROCESS The top-selling wine was Macrostie Chardonnay, and it is well known that a very large portion of these sales came from a regular customer who buys this wine in arge quantities on a weekly basis. Also, three of the top five wine sellers laumched significant promotions during the year. The promotions ran for a few months at a time, and sales greatly increased during the promotion period. The wine purchas- ing process is driven by wine promotions, discounts, and deals they can receive from distributors. According to Tommy, the promotions were accurately corre- lated with sales and eliminated the need to develop a forecast. Weekly sales infor- mation is shown in Table C30.4. Tommy uses the information in Table C30.4, and input from the sales representatives, to roughly estimate purchasing amounts based on previous seasonal sales revenues to determine order quantities. 04 THE OCTOBER 5, 2013 MELTDOWN On September 3, 2013, Tommy had knee surgery. Beverly Jones, the assistant store manager, was assigned to fill in for Tommy for the next two months. One month later, she is literally pulling her hair out trying to manage the purchasing, inven- tory, and customer service activities in the wine department. During the mont there have been significant stockouts, increased inventory costs, and dissatisfied customers. h, BLE C30.4 eekly Sales Week Ending Date 3/17/2012 3/24/2012 3/31/2012 47/2012 4/14/2012 4/21/2012 Sales (S) 12,803.08 Week Ending Date 11,170.51 11,419.25 10,584.89 15,256 1 10,014.5 12,872.14 13,206.5 13,924.4 14,199.63 13,511.79 14,406.58 9/10/2011 9/17/2011 9/24/2011 2,788.18 12,683.1 3,446.87 13,309 42 12,398.04 12.924.28 15,777.85 14,456.13 12,069.85 14,266.77 10/1/2011 108/2011 10/15/2011 10/22/2011 10/29/2011 11/5/2011 11/12/2011 11/19/2011 1 1/262011 12/3/2011 12/10/2011 12/17/2011 12/24/2011 12/31/2011 1/7/2012 1/14/2012 1/21/2012 5/12/2012 5/19/2012 24742 70610012/245050 14,762.22 20,961.76 6/16/2012 6/23/2012 6/30/2012 15,055.12 14,550.5 14,024.56 12,956.21 13,361.24 13,404.63 16,370.24 19,751.23 13,328.64 12,647.94 10,597.29 12,285.99 11,09074 7/14/2012 7/21/2012 7/28/2012 8/4/2012 8/11/2012 8/18/2012 14,147.58 2/4/2012 2/11/2012 2/18/2012 2/25/2012 15,138 55 12,393.37 13,382.52 13,054.52 12,121.55 17.347.75 9/8/2012 915/2012 9/22/2012 3/10/2012

Explanation / Answer

Looking at the weekly sales data, we can conclude that the store was closed for the week ending 9/10/2011.

There is a significant amount of variability in the weekly sales from week to week and from month to month.

Strong seasonality is present in the sales numbers. December is a month of very high sales, possibly due to winter break and christmas season. Sales in all other months is low as compared to december and there is no seasonal element in other months sales. However, variation in weekly sales is quite high, which makes it difficult for the purchasing manager to make purchase and inventory related decisions.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.