Market planning, Inc. a marketing research firm, has obtained the prescription sales data for 20 independent pharmacies (attached). In this table y is the average weekly prescription sales over the past year (in units of $1,000), x1 is the floor space (in square feet), x2 is the percentage of floor space allocated to the prescription department, x3 is the number of parking spaces available to the store, x4 is the weekly per capita income for the surrounding community (in units of $100), and x5 is a dummy variable that equals 1 if the pharmacy is located in a shopping center and 0 otherwise. Regress average weekly prescription sales against different combinations of the independent variables. What is the best model? Discuss what the parameter coefficients say about prescription sales.

Market planning, Inc. a marketing research firm, has obtained the prescription sales data for 20 independent pharmacies (attached). In this table y is the average weekly prescription sales over the past year (in units of $1,000), x1 is the floor space (in square feet), x2 is the percentage of floor space allocated to the prescription department, x3 is the number of parking spaces available to the store, x4 is the weekly per capita income for the surrounding community (in units of $100), and x5 is a dummy variable that equals 1 if the pharmacy is located in a shopping center and 0 otherwise. Regress average weekly prescription sales against different combinations of the independent variables. What is the best model? Discuss what the parameter coefficients say about prescription sales.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Question 2 Mike is a first year university student who is trying to understand his financial situation. Mike currently lives 1.5 miles away from campus. He works part time in a retail centre that pays him £800 per month. Mike saves £200 out of the part time job pay for his further education plan. a). As to the below Travel Expenses table published by the Students’ Union, 185 students were randomly selected to help understand the travel expenses and distance to campus. What’s the probability for Mike to spend over £10 on journeys to campus? Distance to Campus (miles) Amount spent, £ 0.1 to 0.25 0.26 to 1.0 Over 1.0 0 – 4.99 35 26 10 5.00 – 9.99 18 39 20 10.00+ 4 14 19 b). How much is the frequency for students living over 1 mile away from the campus? c). As to the category of Amount Spent, £, what is the modal group? d). Assuming Mike is saving the same amount per month in the next 3 years. How much does Mike get for his saving…
Question 1 Double Exponential Smoothing should be applied to time series with ____________________. Group of answer choices a. no trend and no seasonality. b. trend but no seasonality. c. seasonality but no trend. d. both trend and seasonality. Question 2 An analyst fits a Holt’s Double exponential smoothing model in StatTools to a time series data on sales with the smoothing parameters to be optimized by the software. In the output she notes that the optimized smoothing parameter for trend to be 0.0000. What does this imply? Group of answer choices a. There is no trend in the data. b. There is both trend and seasonality in the data. c. There could be trend in the data, but it is not smoothed over time by the model. d. This output does not make any sense!
question A manufacturer is developing a facility plan to provide production capacity for the factory. the amount of capacity required in the future depends on the number of products demanded by its customers. The data below reflect past sales of its products. a) use simple linear regression to forecast annual demand for the products for each of the nnext 3 years. b) determine the correlation coefficient for the data and interpret its meaning. c) find the coefficient of determination for the data and interprete its meaning. year annual sales (number of products year annual sales (number of products) 1 490 5 461 2 487 6 475 3 492 7 472 4 478 8 458
Question (4): Answer the following problem: Cover Me, Inc. sells umbrellas in two cities. Management assumes that annual rainfall is the primary determinant of umbrella sales, and it wants to generate a linear regression equation to estimate potential sales in another city. Use the table below to develop a linear regression equation to find out what sales might be if the rainfall is 12 inches in City C. Show your work in the below table Rainfall X Sales Y X2 XY City A 36 inches 200 City B 30 inches 250 City C 12 inches Total 66 450
QUESTION 1 Sales of Fat Lips Burgers for 2012 are shown in the table below. 1. Do the 2 month SMA forecast 2. Do 2 month WMA forecast using the information below WMA – 2: last month, 1 – last 2 months 3. For the month of January 2012, the forecast was 438. Do the EMA forecast with the smoothing constant = 0.3. What is the forecast for Jan 2013? 4. Compare the forecasts above using MAD, MSE and MAPE. Which forecast method gives the least errors? Month Actual Sales Forecast Jan 2012 438 Feb 420 March 414 Apr 318 May 306 June 240 July 240 Aug 216 Sep 198 Oct 225 Nov 270 Dec 315 Jan 2013 - QUESTION 2Dayang sells 5 kg bags of fertilizer to local farmers in Tg Karang. The sales data for the past 11 months is shown below. Month Demand (10s of bags) 1 4 2 6 3 4 4 5 5 10 6 8 7 7 8 9 9 12 10 14 11 15 1. Find the forecast for the month 12 using the methods below: a. Simple 4 month moving average (SMA) b.…
QUESTION ONE (b) The forecast of a product for the first week of January was 200 units, whereas the actual demand turned out to be 220 units. i. Find the forecast for the week of January assuming the smoothing constant 0.2 α = ii. Find the forecast for the third week of third week of January if the actual demand of the second week is 210 units
QUESTION 2 In the airline market, vacation-traveler customers have a more elastic demand than business-traveler customers, although the marginal cost of serving either type of customer is the same. If the airline companies engage in price discrimination, which customers end up paying a higher price? Vacation-traveler customers. Prices will be the same because the marginal costs are the same. There is not enough information to answer. We also need to know the average cost of serving each type of customer. Business-traveler customers. QUESTION 3 A seller engages in price discrimination by market segment. Morning customers have a price elasticity of demand E = -2, while evening customers have a price elasticity of demand E = -3. The MC of selling to both groups is the same and constant at $100. Therefore: morning customers will pay P=$400, while evening customers will pay $300. morning customers will pay P=$400, while evening…
Question 4 The below data represent the advertising expenditure and sales of Little Liu Ltd from year 2008 to 2017. Table: Advertising Expenditure vs. Sales from 2008 to 2017 Year Advert. Expenditure Sales (x, £000) (y, £000) 2008 8 30 2009 12 40 2010 11 29 2011 5 29 2012 14 43 2013 3 17 2014 6 20 2015 8 30 2016 4 22 2017 9 40 Total 80 300 Work out the values of parameters of the relationship shown in the Figure (i.e. work out the equation of the relationship).
Question 3 [Soalan 3] Use the data set below to answer the following questions: [Gunakan set data di bawah untuk menjawab soalan-soalan berikut:] Table 1: Monthly sales unit [Jadual 1: Unit jualan bulanan] Month [Bulan] Sales Units [Unit Jualan] 1 1100 2 1200 3 1450 4 1800 5 2100 6 2700 ii) Calculate the four-period weighted moving average forecasts for months 5 and 6 using weights of 0.05, 0.15, 0.30, and 0.50 from the earliest period to the latest period, respectively. [Hitungkan ramalan wajaran purata bergerak menggunakan empat-tempoh untuk bulan 5 dan 6 menggunakan pemberat 0.05, 0.15, 0.30 dan 0.50 dari tempoh yang terawal ke tempoh yang terakhir mengikut turutan.]