Final Project - LemondeStandCase
Final Project - LemondeStandCase
Final Project - LemondeStandCase
Final Project
Business Scenario:
Two children started a lemonade stand to earn some extra money at a local country club/golf
course over the summer (June, July, and August). The golf course is open every day (weather
permitting) except Mondays. The golf course built a lemonade stand structure with an ice-
making machine and secure storing of inventory. Then, the golf course signed an agreement
allowing the children to operate the lemonade stand on the golf course for a rental fee of 5% of
sales. In the agreement, the golf course provides electricity and water (for their computer and ice
machine).
The children were excited to offer 19 flavors of lemonade. They purchase the lemonade in
individual containers (12 ounce cans) from the local grocery store. For weekdays (Tuesday
through Friday), one child works for a fixed wage ($75 per day). On Saturday and Sunday, two
children are scheduled to work each earning a fixed wage ($75 each per day).
One of the children has a parent who had recently gone back to school at the time the children
were starting the Lemonade Stand and was taking a database course. One of the assignments for
the course was to design a database. In order to complete the assignment and help the children,
she offered to design a database so they could keep track of inventory and sales.
To track sales by employee, she designed an invoice for the children to enter sales (see Figure 1
below). They would like to be able to track sales by employee. They would also like to be able to
track contact information (name, phone, address, city) for each employee.
The sales are recorded at the time of purchase. For each sale, the employee enters the member
number, flavor(s), and the quantity of each flavor for the sale. A paper sales receipt is signed by
the member to acknowledge receipt of the goods and kept on file. The country club/golf course
has members (these members are customers of the lemonade stand) who have a membership card
that works similar to a credit card for purchases at the club house, pro shop, and at the lemonade
stand. The members are billed at the end of the month for purchases that month. Therefore, the
lemonade stand must submit a monthly report detailing sales to each member to the club. The
members remit a check directly to the lemonade stand.
Cash receipts are recorded by an employee when the payments are received. The record of
receipt includes the date, employee ID, amount of the check, which bank account the check will
be deposited in, the golf course id (only one location at the current time, but they hope to grow
their business), and the member ID.
They would also like to track information about customers (members) including name, phone,
address, city.
Right now, they only have one lemonade stand, but in the future, they hope to expand operations
to other golf courses. As such, they would also like to track information about each location for
the lemonade stand. Specifically, they would like to track the name of the golf course on which
the lemonade stand is located, the address of the golf course, and the name and phone number for
the person in charge of the golf course.
1) What possible explanations might exist that lead to the variability in sales for each shift?
2) How might daily events/tournaments/weather impact sales?
The owners of the lemonade stand want to know if weather affects daily sales. Many items like
temperature, rain, or even cloud cover could influence sales. This knowledge is important for
sales forecasting and budgeting purposes. For example, knowing that cloudy weather decreases
sales would help the owners determine how much lemonade to purchase for resale.
In order to determine if weather affects sales, perform the following steps:
1 Acquire external data (weather). In practice, similar to what was pulled from the National
Weather Service, data typically requires making sure we understand what is provided and that it
is in a format usable for our purpose.
2) Open the Excel “weather” file and become familiar with the data (See Table 2).
3) In practice, data files typically need to be cleaned before use. The weather file has several
issues that need to be addressed before the data can be used. First, the date column is in numeric
format. Second, rainfall has a “T” for a trace of rain.
a) Date column issue: the number (ex. 10613 = 1st day of June, 2013) will not be read by
Excel or Access as the desired date. If we use the Excel cell format to change from
numeric (general) to a date format, it will incorrectly change the date to 01-29-1929. To
fix the date column, we suggest inserting a column. Title the column heading in row 1
(“date”), and then set the format of rows 2, 3, and 4 to date (ex. 3/14/2013). Then, in rows
2, 3, and 4 of that column, type 06/01/2013, 06/02/2013, and 06/03/2013 respectively.
Highlight those three cells and place your cursor at the bottom right of row 4 cell. Then,
click and hold the left mouse button and drag down slowly to the end of the August 2013.
Repeat for 2014 and 2015 summer dates.
b) For the rainfall (WTR) column, scroll down the column and replace all “T” values
with .01. (The “replace” command can be used for this step. Alternatively, a student
could write a formula to convert.)
c) Note the WX column identifies special weather events. See coding in Figure 4. In the
data the most common are 1, 2, 3 and 8. If a day has a 138, the weather service noted 1 =
fog, 3 = thunder, and 8 = haze. If a person wants to compare weather features to sales, the
coding would need to be split into multiple columns. (This is not needed for our
analysis.)
After cleaning the weather data, the weather data in your spreadsheet should appear like Figure
4:
5) Perform a query to match the daily weather data to the daily sales data.:
a. Create a query that includes total daily sales ($ and units)
b. Create a query using a “daily sales query” and the “weather table” joined on date.
c. The query should have sales data and weather data for all days the business was open
for all three years.
6) Extract your query in part 6a to a spreadsheet.
Part 6b: Correlation analysis
This deliverable requires you to conduct a correlation based on the sales weather spreadsheet you
created in step 6a. The following steps are required for this case:
1) Rename your worksheet with your sales and weather data to “SourceData”.
2) Copy the data to another spreadsheet tab and rename this tab “DataforAnalysis”. You
need to arrange the data on this tab so that the data appear like Figure 5. You can arrange
the data manually or you could use a pivot table. To use a pivot table in Excel:
a. Create a pivot table as prep for the correlation analysis.
b. Insert the pivot table on a separate worksheet labeled “DataforAnalysis”. Once
you have created your pivot table, EditPaste special values. You can also
complete this step without a pivot table by removing certain fields from your
source data (Qty for example). Your pivot table should look like Figure 5:
References:
This case is based on the following:
Schafer, B., and Bee, S. (2018). The Lemonade Stand: An Elementary Case for Introducing Data
Analytics. AIS Educator Journal. Volume 13, Number 1, pages 30-43.