BeeRUS is a beer distributor that handles the distribution for beer for large re
ID: 454466 • Letter: B
Question
BeeRUS is a beer distributor that handles the distribution for beer for large retails chains, however, it also has its own retail outlets, selling beer throughout Florida. BeeRUS is facing a couple of important business decisions.
1. The Operations Management team needs to determine how to best distribute beer from its warehouses to its retail outlets, as it recently added 4 new retail outlets, straining the distribution system. Historic data from the current outlets was collected , traffic patterns close to the retails outlets, population over 21 years as well as the marketing budget of the respective outlet (see input data file). The respective data for traffic patterns, population over 21 and marketing budget are also given for the four new locations. This data can be used to find an appropriate model to predict at the four new retail outlets (Note: you need to analyze all three variables and all possible combinations of all three variables to decide on the best model)
Instructions:
Carry 2 decimals for all calculations, except for values for beer bottles, which need to reported with zero decimals (i.e. integers).
Any simulation you may choose to perform needs to be performed with 5000 runs.
Please remember to always include a concluding sentence for each model you submit, you will lose points if you do not.
[Needed excel files]
https://drive.google.com/folderview?id=0B95SY57Hrg0OU01tTWJZR2NBcVU&usp=sharing
Explanation / Answer
A + B + C+ D
= $0.40+ $0.30 + $0.35 + $0.45
= $1.5
OPERATING COST = $0.70
Cost for large = $0.70 + $1.5 = $2.2 + $4000 + 14%
Cost for medium = $0.50 + $1.5 = $2 + $4000 + 14%
Cost for small = $0.35 + $1.5 = $1.85 + $4000 + 14%
Transportation cost of Tallahassee is less than other outlet. Hence, increase the sales in Tallahassee.
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