Abstract for: Retail Sales Generation: A Methodological Comparison of Econometric Estimation and Calibration
We take a production economics perspective to formulate a sales generating function that incorporates traffic and labor in retail stores. The estimation of this function is the basis for the development of a full system dynamics model that will enable managers to take a holistic view on labor planning process. To recover the structural parameters, we compare regression-based estimation and optimization-based calibration. This comparative approach allows us to assess the usefulness and applicability of new econometric estimation paradigms in the context of system dynamics modeling. We conclude by briefly describing possible extensions to our modeling efforts, expected outcomes, and methodological implications in terms of calibration.