Difference between revisions of "ANLY482 AY2017-18T2 Group10 Analysis & Findings: Recommendations"

From Analytics Practicum
Jump to navigation Jump to search
Line 37: Line 37:
  
 
<!-- Body -->
 
<!-- Body -->
==<div style="background: #ffffff; padding: 17px;padding:0.3em; letter-spacing:0.1em; line-height: 0.1em;  text-indent: 10px; font-size:17px; text-transform:uppercase; font-weight: light; font-family: 'Century Gothic';  border-left:8px solid #1b96fe; margin-bottom:5px"><font color= #000000><strong>Establish Outlets in the Heartlands </strong></font></div>==
+
==<div style="background: #ffffff; padding: 17px;padding:0.3em; letter-spacing:0.1em; line-height: 0.1em;  text-indent: 10px; font-size:17px; text-transform:uppercase; font-weight: light; font-family: 'Century Gothic';  border-left:8px solid #1b96fe; margin-bottom:5px"><font color= #000000><strong>Impact of Residential Areas </strong></font></div>==
 
<div style="margin:0px; padding: 10px; background: #f2f4f4; font-family: Century Gothic, Open Sans, Arial, sans-serif; border-radius: 7px; text-align:left; font-size: 15px">
 
<div style="margin:0px; padding: 10px; background: #f2f4f4; font-family: Century Gothic, Open Sans, Arial, sans-serif; border-radius: 7px; text-align:left; font-size: 15px">
Through our Exploratory Data Analysis, we identified that there are 2 main clusters for XYZ outlets. One cluster which has a high proportion of tourists, are those which are located in the city, whereas another cluster has outlets located in the heartlands(Tampines, Serangoon, etc.) This is particularly telling, since these locations are more residential and do not generally attract tourists. Thus, this means that the success of these outlets is thus highly dependent on the customers who live and/or work in the vicinity.
+
Through our Exploratory Data Analysis, we identified that there are 2 main clusters for ABC's outlets. One cluster which has a high proportion of tourists, are those which are located in the city, whereas another cluster has outlets located in more residential areas. Given that the two highest performing outlets are in more residential areas, ABC could factor the surrounding area into consideration when looking for new locations to open in. </div> <br/>
 
 
In addition, the top 2 performing outlets out of 6, are from the heartland areas. This indicates the importance of being located in “heartland” areas, given the greater outreach of customers available, as well as persistence (e.g. tourists are likely to patronise an outlet during their stay in Singapore and would probably not return, while residents living in an area may frequent the outlet more). Furthermore, this does show that the buffet concept is still popular amongst the local residents, and thus XYZ company could look at opening new outlets in densely populated urban areas as part of their future expansion, in order to reap higher revenue.</div> <br/>
 
  
 
==<div style="background: #ffffff; padding: 17px;padding:0.3em; letter-spacing:0.1em; line-height: 0.1em;  text-indent: 10px; font-size:17px; text-transform:uppercase; font-weight: light; font-family: 'Century Gothic';  border-left:8px solid #1b96fe; margin-bottom:5px"><font color= #000000><strong> Standardise UOM For Stocktaking</strong></font></div>==
 
==<div style="background: #ffffff; padding: 17px;padding:0.3em; letter-spacing:0.1em; line-height: 0.1em;  text-indent: 10px; font-size:17px; text-transform:uppercase; font-weight: light; font-family: 'Century Gothic';  border-left:8px solid #1b96fe; margin-bottom:5px"><font color= #000000><strong> Standardise UOM For Stocktaking</strong></font></div>==

Revision as of 14:00, 15 April 2018

Tennet logo.png


HOME

ABOUT US

PROJECT OVERVIEW

ANALYSIS & FINDINGS

PROJECT MANAGEMENT

BACK TO MAIN ANLY482

EDA

Recommendations

Model

Impact of Residential Areas

Through our Exploratory Data Analysis, we identified that there are 2 main clusters for ABC's outlets. One cluster which has a high proportion of tourists, are those which are located in the city, whereas another cluster has outlets located in more residential areas. Given that the two highest performing outlets are in more residential areas, ABC could factor the surrounding area into consideration when looking for new locations to open in.


Standardise UOM For Stocktaking

One of the main issues that we discovered was that there are items where quantity is recorded in the wrong units of measurement. From our understanding, this is because the personnel in charge of the stock take may have their own interpretation of the UOM and thus made an error in recording. We recommend that the stocktaker also record the UOM in which they are recording in addition to the quantity value. This will help eliminate such errors in future as it would highlight errors during data entry and improve the accuracy of inventory data in the future, with the potential for cost savings.


Customer Count Forecasting

From the comparison of both Exponential Smoothing and ARIMA for customer count forecasting, we found that the ARIMA models were on average more suitable and more accurate (lower RMSE, MAPE, MAE) than Exponential Smoothing. ABC Company could thus consider implementing ARIMA in forecasting for future customer counts alongside their own internal forecasting methods.