As a manager, we want to minimize expenses and maximize profit. One way of doing that is by making sure that menu production is as close as possible to what customer’s order. By using data collected over time, we can apply the percentage of an item ordered during a meal period. This helps the manager decide what amounts are appropriate, so the restaurant does not run out of ingredients or have excessive amounts.
The word “popularity” can be used to remember the definition of this term. In other words, the popularity index is how “popular” is an item on the menu or the percentage of total guests choosing a given menu item from a list of alternatives.
Here’s a Similar Popularity Index:
Using the formulas given below, see if you can figure out how they calculated the popularity index in Figure 3.2 and the Predicted Number to Be Sold.