team b wk 6

14
Inventory Proposal Team B QRB/501 Prof. Scott Hannum

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Inventory ProposalTeam BQRB/501Prof. Scott Hannum

2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Time Money Value Forecasts & Histograms

Monthly Seasonal Indices of Total Net for California Business Bureau Collector Statistics

2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Mean, Median, & Mode

Monthly Seasonal Indices of Total Net for California Business Bureau Collector Statistics

In millions 2008200920102011201220132014January1.91.82.82.52.7$2.84 $2.98 February3.41.34.51.64.8$5.04 $5.29 March 12.883.11.4$1.47 $1.54 April3.21.73.71.74.6$4.83 $5.07 May1.81.22.63.41.4$1.47 $1.54 June1.63.82.92.32.3$2.42 $2.54 July1.61.82.92.42.3$2.42 $2.54 August1.82.433.91.4$1.47 $1.54 September0.55.53.93.50.7$0.74 $0.77 October1.90.93.12.32.7$2.84 $2.98 November1.12.74.22.21.6$1.68 $1.76 December10.830.81.4$1.47 $1.54 Mean1.7332.2253.7172.4752.2752.3892.508Median1.71.83.052.351.952.04752.149875Mode1.91.82.92.31.41.471.5435

2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Standard Deviation & Range

Monthly Seasonal Indices of Total Net for California Business Bureau Collector Statistics(Table 1)

In millions 2008200920102011201220132014January1.91.82.82.52.7$2.84 $2.98 February3.41.34.51.64.8$5.04 $5.29 March 12.883.11.4$1.47 $1.54 April3.21.73.71.74.6$4.83 $5.07 May1.81.22.63.41.4$1.47 $1.54 June1.63.82.92.32.3$2.42 $2.54 July1.61.82.92.42.3$2.42 $2.54 August1.82.433.91.4$1.47 $1.54 September0.55.53.93.50.7$0.74 $0.77 October1.90.93.12.32.7$2.84 $2.98 November1.12.74.22.21.6$1.68 $1.76 December10.830.81.4$1.47 $1.54 Std Dev0.8541.3531.4790.8861.2841.3481.416Min0.50.82.60.80.70.7350.77175Max3.45.583.94.85.045.292Range2.94.75.43.14.14.3054.52025

2/5/13 11:41 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Raw Data Used

Frequency Distribution (FY 2012)

This frequency distribution of the FY 2012 shows how the most frequent amount assigned for collection was $4.6 million.

2/5/13 12:37 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Indices and how they help

The billing and collection department of a major hospital has provided 4 years worth of data. This data shows the amount of medical debt each collection agent has assigned to him or her throughout the different months of the years in millions of dollars. Data covering the years 2008 through 2011 are provided. The data for the year 2012 is forecasted using the Consumer Price Index (CPI) for medical care services for the selected years. The CPI for medical care services in 2008 is 2.6 (Bureau of Labor and Statistics, n.d.) and this is the number used to forecast the amounts assigned to collection agents in 2012, where the CPI is 3.7. According to the forecast, 2012 will have many of the same peaks, valleys, and plateaus seen in 2008. The main difference between the two years is the plateau forecasted for the months of May, June and July of 2012 rise much higher than the plateau seen in the same months in 2008.

2/5/13 12:00 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Normal Distribution (FY 2012)

How Data Analysis and Inventory Systems HelpData analysis is a part of the business intelligenceConfirmation of a hypothesisForecasting

How Data Analysis Helps Form Inventory SystemsHelps properly allocate resources (employees, time, money) Helps identify if any changes can be made and where they can be made Facilitates incremental changes

QuestionsWell happily address any questions! THANK YOU!

Chart11.91.82.82.52.73.41.34.51.64.812.883.11.43.21.73.71.74.61.81.22.63.41.41.63.82.92.32.31.61.82.92.42.31.82.433.91.40.55.53.93.50.71.90.93.12.32.71.12.74.22.21.610.830.81.4

Table 120082009201020112012Millions of DollarsAmmounts Assigned

Sheet1In millions20082009201020112012January1.91.82.82.52.7February3.41.34.51.64.8March12.883.11.4April3.21.73.71.74.6May1.81.22.63.41.4June1.63.82.92.32.3July1.61.82.92.42.3August1.82.433.91.4September0.55.53.93.50.7October1.90.93.12.32.7November1.12.74.22.21.6December10.830.81.4