Forecasting profit based on allocation of labor and time-series data

Situation: a store sells services A B, and we have historical data for daily sales/revenue/profit of each service. The store is interested in whether they should staff for more of service A or service B in the future. They have a fixed employee base (can't hire or fire) but employees can swap between performing service A and service B. Furthermore, historically the total number of employees working on each service doesn't change much, e.g. a store may have 3 for service A and 4 for service B for the entire year, and then the following year have 5 for service A and 4 for service B.

Goal: provide recommendation on how to allocate employees for service A and service B so as to maximize future profit.

Thoughts: the data we have is in a time-series format so ARIMA model can forecast sales but how can I account for the allocation between service A and service B?

Topic forecast predictive-modeling

Category Data Science

1
answered at

Try below approach:

  1. Forecast sales using arima

  2. Find the relation between resources and sales using linear regression.

  3. Predict resources for forecasted sales using the line fit in linear regression.

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