(1)

Developing forecasting models for all the 120 items will be inefficient. Instead, Apollo should
categorize the food items into two scales - High-value vs. low-value items and perishable vs. non-
perishable items. Then it should focus on the perishable items which are high-value in nature as the
non-perishable items can be stored slightly over-stocked considering their maximum level of
consumptions. Among the perishable & high-value set of items, we can further prioritize by using the
correlation among the items. For example, when two items are highly correlated, we can develop a
forecasting model for one of them only. Also, it is a good idea to forecast the demand for plate types
instead of individual food items to have the advantage of aggregate forecast accuracy.

(2)

Following are the plots of different food items for which the data were supplied

The following insights can be generated from the nature of the plots (or otherwise)

 Chatney and Sambar shows the exact same trend

 Chatney and Sambar can’t be independent, should depend on Dosa / Idly
 The time-series for all the items are stationary in nature
The correlation matrix is as follows

Not surprisingly, Samber and Chetney are having a very high correlation among themselves.

This study source was downloaded by 100000853846288 from CourseHero.com on 10-19-2022 10:34:13 GMT -05:00

https://www.coursehero.com/file/89172404/apollo-case-questions-docx/
 Also, a North Indian breakfast is having a moderately high correlation with Idly and Omellete
consumption.

None of the items has a high correlation (positive or negative) with the overall breakfast occupancy.

Summary statistics
North
Chutne Continental Indian
BKFST_OCCUP Idly Dosa y Sambar Omellette B/F B/F

Mean 215.16 59.27 25.48 131.34 131.47 13.59 41.30 4.35

Standard
Error 1.81 0.66 1.06 1.01 1.04 0.49 0.54 0.19

Median 215.00 61.00 22.00 130.00 130.00 13.00 40.00 5.00

Mode 220.00 50.00 20.00 130.00 130.00 13.00 40.00 2.00

Standard
Deviation 19.38 7.03 11.38 10.87 11.12 5.26 5.79 1.99

Sample
Variance 375.47 49.48 129.41 118.26 123.72 27.70 33.56 3.97

Range 108.00 30.00 62.00 65.00 65.00 17.00 30.00 8.00

Minimum 151.00 40.00 0.00 95.00 95.00 5.00 25.00 0.00

Maximum 259.00 70.00 62.00 160.00 160.00 22.00 55.00 8.00

Coefficient
of
variation 0.090 0.119 0.446 0.083 0.085 0.387 0.140 0.458

This study source was downloaded by 100000853846288 from CourseHero.com on 10-19-2022 10:34:13 GMT -05:00

https://www.coursehero.com/file/89172404/apollo-case-questions-docx/
Powered by TCPDF (www.tcpdf.org)