Supplyco/561 Week 4

Week 5 Problems
Applied Business and Research Statistics 561

1. SupplyCo. is a supplier to a number of firms in an industry. By carefully mining its customer data warehouse, SupplyCo. reveals a plausible new model for manufacturing and distributing industry products that would increase the overall efficiency of the industry system, reduce costs of production (leading to greater industry profits and more sales for SupplyCo.), and result in greater sales and profits for some of the industry's manufacturers (SupplyCo.'s customers).
On the other hand, implementing the model would hurt the sales and profits of other firms that are also SupplyCo.'s customers but which are not in a position (due to manpower, plant, or equipment) to benefit from the new
The results are shown in the table below.

|Machine # |Speed |Price |Expected Price |Price Variance |
|1 |2 |$2,689 |$2,724 |(34.55) |
|2 |1.6 |1,229 |1,973 |(743.64) |
|3 |1.6 |1,419 |1,973 |(553.64) |
|4 |1.8 |2,589 |2,348 |240.91 |
|5 |2 |2,849 |2,724 |125.45 |
|6 |1.2 |1,349 |1,222 |127.27 |
|7 |2 |$2,929 |$2,724 |205.45 |
|8 |1.6 |1,849 |1,973 |(123.64) |
|9 |2 |2,819 |2,724 |95.45