Monday, November 26, 2012

Formula and Datapoints

My apologies.

The formula I released last time is incorrect. As it stands now I cannot give a reasonably accurate formula. That initial formula worked for 15 footprint shops, that is 3 x 5 only. It doesn't work for 5 x 6, nor does it work for some other unknown variable.

I am certain you could work out your own formula if you collected enough data.

As it stands right now, my own formula for 5 x 6 shops is estimated by:

119.88 x Inventory x Employees / (Total Perks x Demo)

I could not extend it to Kate Media's shops;

If you could send me your data points, I will be happy to try and work out a general formula,
I will upload my own data at some point;

The things that I think are particularly pertinent are:

(Assuming 100% GPCD and max employees) Shop footprint, Floors, Inventory, Perk, Demo and JIT level.

Whether CEO level, company level, or CHC affect SFR is unknown (to me at least). It would be useful if you included that in your data!

The reason for trying to work out a formula are two fold - it can help you plan your sourcing cycles by estimating the time to run down for any broad increases in floors/size of the shops (i.e. you expand all your shops by 1 floor); the second use would be to plan ahead to see how much of an increase in TR you could gain by selling smaller shops and opening larger ones.

Have fun,

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