Promotional Strategies in an Ice Cream Parlor
by Felisa J. Vázquez-Abad and Yanick Champoux
This page presents a case study which is an example of
Market Analysis. We shall first introduce our Ice Cream Parlor,
how many people come every day and what do they buy. When we set up the
simulation for estimating the daily profit, we shall introduce
methods for
efficient programming. Then we go into a promotional strategy where coupons
are offered to clients. The market analysis touches two factors: estimation of
the daily profit as well as estimation of the credit risk, namely that after a
week's operation our creamery goes bankrupt, and by how much. Finally, we
introduce another promotional strategy and motivate how simulation can be used
to compare two strategies.
Estimating the Daily Profit
You will find here the concepts of:
- Progamming: how to...
- Confidence Intervals and Efficiency: estimation errors.
- Generating Random Variables: Tricks to make the simulation faster.
- Variance Reduction: Stratification versus Conditioning.
which take you by the hand (or so we hope) on how to prepare a
simulation. In addition, the last two topics introduce in a simple context
some advanced techniques for efficient simulation.
Evaluating a Promotional Strategy
You will find here the subjects:
Fast Simulation: Changing the Measure to estimate credit risk.
Comparing Two Systems: Simulation as a tool for decision making.
which illustrate advanced techniques where simulation could be of great value.
HOW TO BROWSE: The topics within this example
are "ordered" logically, as shown in the
floating menu, but you can jump
around and go back and forth depending on what you want to review.
© Copyright 1998
Felisa J. Vázquez-Abad
and Yanick Champoux.
All rights reserved.
