Document Type
Thesis
First Faculty Advisor
Dr. Teresa McCarthy-Byrne
Second Faculty Advisor
Dr. Michael Gravier
Keywords
forecasting; historical sales data; regression
Publisher
Bryant University
Abstract
In 2012, Colorado and Washington legalized the recreational use of cannabis for any person over the age of 21. Since then, many other states have followed in their footsteps including Rhode Island. The cannabis industry is booming and has a supply chain that is demanding and changes daily. One key concept of supply chain management is forecasting, which is a prediction of demand based on past sales data as well as other external factors. The goals of this exploratory study are to determine the most accurate technique for forecasting demand and use that technique to forecast demand in the newly legalized market in Rhode Island and create a framework that could be applied by other states that are thinking about legalization. Different methods of forecasting will be used including time series methods and regressions to determine if there are external factors that may affect demand. The data collection for this project included past sales data from states that have already legalized recreational cannabis. Additionally, interviews of dispensary owners were conducted to determine if there are external factors that could be affecting demand. The findings and framework that will result from this project could be implemented by other states to project demand.
Comments
This work aims to provide a framework for states that want to legalize cannabis on the recreational level. The framework provides insights into which external variables affect sales, as well as provides a preferred forecasting technique.