Day 7

Today, we met with the developers and were able to ask questions. The software uses nine different forecasting models. At any given time, the computer is able to determine which of the forecasting models provides the greatest accuracy at that time. It does this by finding which model has the smallest mean squared error. This was an exciting time, because I was able to see some of the concepts that I teach in statistics in action.

They use a forecasting model that has 39 coefficients and they have over 40,000 inventory items.

Day 6

Today, I spent most of the day looking at data. One of the software packages that I'm responsible for training is called the Buy Planner. The data report that it produces, allows stores to analyze the deals that they get on merchandise. I was creating examples of buys that had either increased the profit margin or decreased the profit margin. The idea is to allow the people who use the software to make decisions based on examples from their own stores.

Days 3 - 5

I spent the last three days visiting the stores that I'm working with. On Wednesday, I visited Ankeny and spent the day with the product management team. They are responsible for maintaining inventory. This job includes ordering, counting, printing price tags, etc.

Thursday, I was ill.

Friday, I spent the morning in Indianola. I worked with their product manager and learned how to set a new item. When stores receive new items, they have to determine where it will go on the sales floor. If it's soup, it goes in the soup section, obviously. However, it's a little more involved than that. The product manager has to decide where in the section to put the new item. If it's a new flavor, similar to some already stocked, then the logical place is beside the other flavors. This can present a challenge, because often something must be replaced with the new item.
Product managers can look at data on what items are the slowest movers, lowest grossing items, out of season, etc. They use all of this information to inform their decision.

Day 2

Today I visited the three stores I will be working with, Ankeny, Indianola, and West Des Moines #4.

The rest of the day was spent looking further into some of the software applications that I'll be working with. As we took a look at all of the forecasting and calculations that the software does, I was reminded of the debate over content versus process. Math teachers often focus on algorithms and specific math skills.

The movement has been to focus on the higher order thinking skills and the application of the mathematical thinking. These software automate many of the lower level skills, like calculating section blends, gross profit margins, etc. This means that students that are only able to substitute values into formulas or perform algorithms will be at a severe disadvantage. The student/worker who can analyze, create, synthesize will have an advantage, because these are the skills that businesses prize and are often in low supply.

Day 1

I received a finer appreciation of what my students endure on a daily basis today. I spent the day being trained on the software applications that the management teams at each store use. There is an application that helps with pricing, one for ordering, one for inventory management, and my first project is one that helps analyze gross profit. It was a lot of information to digest in a day, and I expect to see more tomorrow.

One thing that stood out to me as a statistics teacher, was how one particular application used means and variance to help forecast product movement. I stress the need to talk about the center and the spread of a distribution all of the time. Here is an example of where these concepts are put into practice.

I will begin my externship on Monday, June 21st at Hy-Vee. I am very excited about this opportunity and I have Hy-Vee and the Iowa Math and Science Education Partnership to thank. I will be keeping this blog up to date with my thoughts over the next six weeks as I navigate my way through this experience.